Is Ford Motor Company (F) the Best-Valued Automaker?

The major Japanese automakers Toyota Motor Corporation (NYSE:TM) and Honda Motor Co Ltd (NYSE:HMC) are expected to see some of the more robust growth over the next half-decade, each with expected EPS growth rates of greater than 30%. Toyota has the best growth prospects of the two, as well as any of the five auto companies mentioned here, at a 40% long-term expected earnings growth rate. Billionaires were flooding into Toyota last quarter, with Ken Fisher, Jim Simons and Bill Gates all adding the car company to their portfolios (check out Bill Gates’ top picks).

Honda pays a superb dividend yield of 2.3% with only a 37% payout. The stock’s downside is its industry-high P/E ratio of 16x and a rather low operating margin of 4%. Compared to Toyota, Honda is up half as much year to date, but has a far richer valuation. Overall fund interest in Honda was weak last quarter, but mega-hedge fund manager Jim Simons was still its top name investor (check out Jim Simons’ favorite bets).

Last but certainly not least, the up-and-coming electric car company Tesla Motors Inc (NASDAQ:TSLA) trades at a particularly out-sized valuation given its negative earnings. Tesla is still up 19% year to date – and up 80% since its July 2010 IPO – despite its inconsistent profitability. At an expected 5-year earnings growth rate of 38%, though, it is a solid opportunity should investors decide to bet on high-end electric cars. Billionaire Steve Cohen dumped his entire stake of Tesla last quarter, perhaps as a profit-taking move (see Steve Cohen’s biggest bets).

To recap: Ford’s valuation is compelling, and the stock looks like a good investment going forward. It’s upside potential that makes Ford undervalued, and the stock also pays a robust dividend yield that is only a 3% payout of earnings. For more coverage of top-tier automakers, continue reading below:

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