Ford Vs. GM: One Stock Could Have 50% Upside

Five years into a remarkable industry rebound, auto makers -- and their parts suppliers -- now generate record profit margins that would have been unthinkable a half decade ago.
The streamlining of almost every player has led to robust levels of the most important metric you should track: Free cash flow (FCF). One benefit of such financial strength: stock buybacks have been a major ongoing theme for auto parts suppliers.
Of course, the FCF and other financial metrics grow much larger when you are talking about the industry's top dogs: Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM). Both firms look far healthier -- from a financial perspective -- than they did a decade ago. (Earlier this week, Ford preannounced a challenging period ahead but largely reiterated long-term financial targets.) (more)

Please share this article