The Recovery Everyone Can See Coming: Ford Motor Company (F), Toyota Motor Corporation (ADR) (TM), Honda Motor Co Ltd (ADR)(HMC)

An example of where Ford could do better is, in the difference in operating margin in North America at 8.4%, versus South America at 4.8%. In addition, the company’s huge revenue growth in the Asia Pacific Africa division was overshadowed by their tiny 1.4% margin. It seems clear that Ford North America can teach the rest of the company about manufacturing efficiency. If Ford can improve their margins, the company’s earnings growth could change dramatically.

What Ford Does Better
The good news for Ford shareholders is, their company is growing, and expects to take market share in key geographies going forward. Not only does the company see industry growth in the U.S. and China in 2013, but the company expects to gain market share in both regions. While Europe is expected to still be problematic, this is likely the trough of the cycle.

In addition, Ford has achieved two goals that were set out several years ago. The company’s debt ratings have recovered, and with the recent dividend increase, the company’s yield is a significant part of investors potential returns. In fact, Ford’s stock yields over 3%, which outshines Honda at 2.6%, Toyota Motor Corporation (ADR)(NYSE:TM) at 1.3%, and General Motors’ non-existent dividend.

Some investors might prefer Toyota or Honda’s huge potential growth as better investments. However, their market share recovery may not happen as quick as analysts expect. Ford and GM are not the whipping boys of the industry they used to be. Both companies have gotten leaner and more efficient, and are producing better quality products. While GM has the faster expected growth rate at 12.58%, their lack of a dividend is what makes Ford my pick. The company’s yield of 3%, plus at least a 10.5% growth rate looks like a good value. With shares trading at just 9.3 times projected earnings, and positive signs in the auto industry all around, this is a recovery everyone can see coming.

The article The Recovery Everyone Can See Coming originally appeared on Fool.com and is written by Chad Henage.

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