Volkswagen Vs. Ford: Which Auto Manufacturer Is A Better Buy?

blue Ford pickup truck

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Auto manufacturers are one of the sectors with the most upside in 2021 from a cyclical and secular perspective. Auto sales are due for a strong rebound, while electric vehicles (EV) and autonomous vehicles (AV) will drive long-term growth.

The average car on the road is now 12 years old, while 25% of cars are over 16 years old. Further, household finances are in good shape, while interest rates are low which will also contribute to strong demand.

Volkswagen (VWAGY - Get Rating) Ford Motor Company (F - Get Rating) appear to be solid automotive plays in the year ahead. However, one of these automakers has more merit than the other in the context of investing.

Volkswagen

VWAGY is Europe’s top automaker. Contrary to what most people think, VWAGY’s revenue stems from more than automotive sales. VWAGY also provides auto-related services and products. Featuring nine independent brands, VWAGY provides a diverse array of automobiles, each with unique merits. VWAGY’s worldwide manufacturing base makes this auto stock that much more appealing.

VWAGY is currently priced around $36 per share. This price level seems reasonable considering the stock currently has a forward P/E ratio of 13.53. VWAGY has drawn the interest of late as the company plans to take on Tesla (TSLA) along with other electric automakers. If VWAGY’s plan is executed, it will sell a million electric vehicles in ’21. The bulk of these automobiles will be BEVs, short for battery-electricity vehicles. In fact, VWAGY’s electric vehicle sales for the year might even rival Tesla’s.

VWAGY has made no secret of the fact that it intends to sell three million electric vehicles every year by ’25. The company’s electric sport utility vehicle dubbed the VW ID.4 will be delivered as soon as the end of the current month throughout Europe, followed by debuts in the United States and China in the months after. Additional VWAGY electric vehicle models will ship to regional markets prior to the end of the year. All in all, VWAGY will develop and make batteries for its EV vehicles at half a dozen gigafactories throughout Europe.

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Duke Peters 3 weeks ago Member's comment

I like the new mustang tho i saw it in Michigan didn't know they already came out with the electric stang. $F