Stellantis vs. GM: Which Is a Better Buy?
Brands like Chevrolet from General Motors (NYSE: GM) are about as American as drinking a Coca-Cola at a baseball game, and familiar to all U.S. investors. The name Stellantis (NYSE: STLA) is decidedly less familiar, but it is home to quintessential American brands like Jeep, Dodge, and Ram. Both companies sell some of the most popular vehicles in the U.S., but the stocks of automakers, in general, have had a tough first half of 2022.
The semiconductor shortage has hit production, and rising commodity and shipping costs have been additional curveballs automakers have had to deal with. Year to date, General Motors is down 37% and Stellantis is down 21%. Both trade at inexpensive valuations, reflecting the challenging environment they are operating in, but a lot of this uncertainty is already reflected in the stock price. Both companies are making progress on offering compelling electric vehicles and both make some of the best-selling vehicles in the United States, so the present situation could be a buying opportunity. Which automaker is the better investment for the long term?
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Source Fool.com
