GM surpasses Ford in market value

chart_ford_vs_gm.top.gif By Chris Isidore, senior writer


NEW YORK (CNNMoney) -- General Motors briefly passed rival Ford Motor in market value Monday, less than three months after GM's initial public offering.

Ford's stock plunged sharply Friday after it announced fourth quarter results that fell far short of analysts' forecasts, its first such miss in two years. Ford (F, Fortune 500) shares tumbled 13% and were off another 4% in afternoon trading Monday, before pulling back a bit.

While GM (GM) shares also lost ground both Friday and Monday, it suffered more modest declines, allowing its market value of $54.1 billion to top Ford's value of $54.0 billion.

Even with its earnings miss, Ford's full-year profit was likely well ahead of GM's profit, according to forecasts. GM is due to report results in February. But GM does have other advantages over its rival.

First, by going through a bankruptcy process with the help of a government bailout in 2009, GM's balance sheet is in much stronger shape than that of Ford.

Second, GM has stronger sales overseas. GM's Chinese joint ventures give it the No. 1 position in that market, which has been the largest market for new car purchases for the last two years. And China's importance is likely to grow. Ford is late to the game in China and is scrambling to try to catch up with other western automakers there.

Finally, GM's U.S. sales still outpace those of Ford, even as Ford gains market share.

But avoiding bankruptcy and gaining market share helped make Ford the investor favorite.

And even with the recent decline in stock price, its shares are up more than 50% since the start of 2010, and it's worth more than ten times its value at the low-point of early 2009, when bankruptcy troubles hung over the industry. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,265.99 109.14 0.64%
Nasdaq 4,593.43 31.24 0.68%
S&P 500 2,011.36 9.79 0.49%
Treasuries 2.63 0.03 1.12%
Data as of 7:53pm ET
Company Price Change % Change
Bank of America Corp... 17.04 0.27 1.61%
Yahoo! Inc 42.08 -0.50 -1.19%
Apple Inc 101.79 0.21 0.21%
Microsoft Corp 46.68 0.16 0.34%
General Electric Co 26.21 0.16 0.61%
Data as of 4:04pm ET

Sections

Alibaba officially secured its place in history as the largest U.S.-listed IPO of all time. The company will be worth $168 billion. More

The Federal Reserve is probably not going to raise interest rates until the summer of 2015 at the earliest. More

Immigrant entrepreneurs leverage connections abroad to boost international exports -- and non-immigrants could stand to learn from their tactics. More

A 10,000 square-foot home doesn't take care of itself, and many of the uber wealthy families who own them don't want to tend to them either. So they hire people like Bryan Peele. Here are journal entries from a day in his life. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.