Better Buy: General Electric vs. General Motors
General Electric (NYSE: GE) has been in the news the last few years, but normally not for good reasons. General Motors (NYSE: GM) has made headlines lately as well, but again not for great reasons. Looking at these two U.S. industrial and manufacturing icons, is there one that stands out as a buy?
General Motors makes cars on a global scale, with the U.S. and China being two of its most important markets. The U.S. auto division was hit with a strike that put a temporary damper on earnings, but that's now resolved. The Chinese auto sector, however, has been relatively weak for some time, and the coronavirus should keep it that way for longer. Fourth-quarter 2019 sales in China were down a massive 13.3%. Put simply, 2019 ended on a bad note -- revenue and earnings were both down for the year -- and because of the health issues China is dealing with, 2020 is likely to start off poorly as well. That remains true even if the U.S. market picks up, since China is very important for GM.
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Source Fool.com
