Ferrari (NYSE:RACE) and Ford Motor (NYSE:F) are both large-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
Institutional & Insider Ownership
32.5% of Ferrari shares are owned by institutional investors. Comparatively, 48.8% of Ford Motor shares are owned by institutional investors. 0.9% of Ford Motor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Ferrari and Ford Motor's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ferrari | 15.50% | 34.85% | 8.97% |
Ford Motor | -0.12% | 2.48% | 0.30% |
Risk and Volatility
Ferrari has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Ford Motor has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ferrari and Ford Motor's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ferrari | $4.22 billion | 9.31 | $779.32 million | $4.16 | 51.08 |
Ford Motor | $155.90 billion | 0.30 | $47 million | $1.19 | 9.77 |
Ferrari has higher earnings, but lower revenue than Ford Motor. Ford Motor is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Ferrari and Ford Motor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ferrari | 3 | 5 | 8 | 0 | 2.31 |
Ford Motor | 2 | 7 | 7 | 0 | 2.31 |
Ferrari presently has a consensus price target of $214.3333, indicating a potential upside of 0.90%. Ford Motor has a consensus price target of $11.3125, indicating a potential downside of 2.14%. Given Ferrari's higher possible upside, analysts plainly believe Ferrari is more favorable than Ford Motor.
Summary
Ferrari beats Ford Motor on 9 of the 13 factors compared between the two stocks.