Ford vs. Stellantis: Which Automaker Stock Has the Edge Now?

Ford Motor Company F and Stellantis N.V. STLA are two leading automakers in the world. Ford manufactures, markets and services its own cars, trucks, sport utility vehicles, electrified vehicles and Lincoln luxury vehicles, while Stellantis designs, manufactures and markets vehicles under 14 brands. Both companies are recalibrating their strategies to better align with the evolving demand landscape.

Year-to-date, Ford shares plunged 9.8%, while STLA stock is down 38%.

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Let us examine the factors that determine why one stock may be more compelling to hold than another.

The Case for Ford

Ford’s revenues rose in 2025 for the fifth straight year, driven by an expanding revenue mix that includes newer segments like hybrid trucks, along with faster growth in higher-margin paid software subscriptions.

Ford Pro remains a key growth engine, supported by strong order books, rising demand for Super Duty trucks, and expanding software and service offerings. The commercial and fleet business continues to deliver double-digit EBIT margins. Strength across vehicles, software and physical services underpins the segment’s momentum. Paid software subscriptions rose 30% in 2025, with software and physical services profits expected to grow 6.5% this year. Partnership with ServiceTitan enhances digital service capabilities, positioning Ford Pro as a major long-term earnings driver for the company.

Ford’s broad lineup, anchored by its F-Series trucks, Maverick pickup, and popular SUVs, provides a solid foundation for growth. Its hybrid strategy adds resilience as EV adoption evolves. The company is focusing on affordable EVs built on a cost-efficient, universal platform, targeting lower-price models where EV demand in the United States has held up better, and profitability is more achievable.

Ford Energy is another strategic lever, with a $1.5 billion planned investment in 2026 and a goal of reaching 20 GWh of battery storage capacity by 2027. It is a strategic, high-margin growth platform that diversifies revenues beyond traditional auto sales. Ford Energy leverages the company’s manufacturing scale and cost advantage in LFP batteries to enter the fast-growing energy storage market. The company plans to convert part of its Kentucky battery plant with SK On and allocate capacity in Michigan for residential energy storage cells. This initiative monetizes existing battery assets and supports a more resilient, higher-return business model over time.

The legacy automaker has a high dividend yield of more than 4%, way better than the S&P 500’s yield of roughly 1% on average. This high yield could entice those seeking a steady income amid uncertain market conditions.

However, its Model e segment continues to struggle amid stiff competition, pricing pressure and significant costs associated with new-generation EV development. After posting losses of $4.8 billion in 2025, Model e is expected to incur a $4-$4.5 billion loss in 2026.

The Zacks Consensus Estimate for F’s 2026 EPS has remained unchanged in the past 30 days, while for 2027 EPS it has improved by 4 cents.

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The Case for Stellantis

As of Dec. 31, 2025, the company’s long-term debt rose to €31.8 billion from €25 billion as of Dec. 31, 2024. High leverage limits a firm’s financial flexibility, making it harder to pursue new growth opportunities.

Stellantis intends to invest $13 billion over the next four years to expand its presence in the crucial U.S. market and strengthen its domestic manufacturing base. This marks the largest investment in the company’s 100-year history in the United States and will fund the launch of five new vehicles across its brand portfolio in key segments, as well as the production of a new four-cylinder engine. As a result, it anticipates higher capital expenditures in the coming years, which is expected to put pressure on its cash flows.

Stellantis is significantly affected by tariffs and other trade barriers imposed by governments across various regions. Recently, there has been a notable increase in tariffs and duties between the United States and its key trading partners, including China, Canada, Mexico, and the European Union. The company relies heavily on imports of vehicles and components from outside the United States, particularly from Canada, Mexico and Italy. Any disruptions in tariff or duty structures could raise costs and negatively impact the availability of raw materials, components and finished vehicles. This, in turn, may lead to higher consumer prices, reduced demand, and pressure on the company’s profitability. The company expects pressures from tariffs and raw materials to remain headwinds in 2026.

Due to the net loss recorded in 2025, the company has decided not to issue a dividend in 2026, which can disappoint income-focused investors.

However, Stellantis expects strong gains in 2026 driven by a broad lineup of new products launched in late 2025 targeting unmet market segments, along with additional launches planned for early 2026. The company anticipates mid-single-digit growth in net revenues and a low-single-digit adjusted operating income margin. It also expects performance to improve sequentially from the first half of the year to the second half.

The Zacks Consensus Estimate for STLA’s 2026 and 2027 EPS has declined 43 cents and 49 cents, respectively, in the past 30 days.

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Conclusion

Ford benefits from steady revenue growth, a resilient product mix led by hybrids and trucks, and high-margin opportunities through Ford Pro and energy solutions. Its consistent dividend yield further enhances its appeal, particularly in uncertain markets.

By contrast, Stellantis faces rising leverage, significant capital expenditure commitments, and near-term cash flow pressures, alongside the suspension of dividends following its 2025 loss. While its product pipeline may support a recovery, pressures from tariffs and raw materials are likely to hurt profits.

Overall, Ford’s balanced strategy, income potential and clearer growth trajectory, along with its current Zacks Rank #3 (Hold), make it a more attractive and stable choice compared to Stellantis, which has a Zacks rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Ford Motor Company (F): Free Stock Analysis Report

Stellantis N.V. (STLA): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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