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[video] Quick Take: Jim Cramer Prefers General Motors over Ford

Tickers in this article: F GM

NEW YORK (TheStreet) -- One of the few stocks that have enjoyed a fresh start in 2014 is Ford , up roughly 6% this January. That, however, doesn't make it Jim Cramer's top pick in the auto sector. 

The Action Alerts PLUS co-portfolio manager is a buyer of General Motors instead. 

Although Ford continues to raise its dividend and GM doesn't pay one, GM offers more upside than Ford does, Cramer said. 

The Treasury Department has exited its position in GM, which is a positive sign because it allows the company to be more flexible with its operations and returns to shareholders.  

Although he's a buyer of GM, Cramer acknowledged Ford is a good stock, too. In January 2011, Ford was trading for $18. "It is now a much better company" than it was three years ago and trades at a discount to the price in January 2011, he added.  

He suggested Ford could rally back to $18. But Cramer concluded that GM could go to $50, which is why he's a buyer.

Shares of Ford traded recently at $16.28, while GM was at $40.06.

-- Written by Bret Kenwell in Petoskey, Mich.