Ferrari (NYSE: RACE) is one of 30 public companies in the “Motor vehicles & car bodies” industry, but how does it contrast to its peers? We will compare Ferrari to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.
Ferrari pays an annual dividend of $0.68 per share and has a dividend yield of 0.5%. Ferrari pays out 21.3% of its earnings in the form of a dividend. As a group, “Motor vehicles & car bodies” companies pay a dividend yield of 1.4% and pay out 20.2% of their earnings in the form of a dividend. Ferrari lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Risk and Volatility
Ferrari has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Ferrari’s peers have a beta of 1.00, indicating that their average share price is 0% more volatile than the S&P 500.
Earnings and Valuation
This table compares Ferrari and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Ferrari||$3.86 billion||$605.15 million||39.12|
|Ferrari Competitors||$62.83 billion||$2.64 billion||16.90|
Ferrari’s peers have higher revenue and earnings than Ferrari. Ferrari is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent ratings and target prices for Ferrari and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ferrari presently has a consensus target price of $125.86, indicating a potential upside of 0.85%. As a group, “Motor vehicles & car bodies” companies have a potential upside of 7.62%. Given Ferrari’s peers stronger consensus rating and higher probable upside, analysts clearly believe Ferrari has less favorable growth aspects than its peers.
This table compares Ferrari and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
32.5% of Ferrari shares are owned by institutional investors. Comparatively, 65.8% of shares of all “Motor vehicles & car bodies” companies are owned by institutional investors. 8.1% of shares of all “Motor vehicles & car bodies” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Ferrari peers beat Ferrari on 9 of the 15 factors compared.
Ferrari NV, known as New Business Netherlands NV, is an Italy-based company, incorporated in the Netherlands, that is engaged in designing, manufacturing and selling sports cars under the Ferrari brand. Its products include nine sports car models, including seven sports cars: 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A; as well as two grand tourer (GT) cars: California T and FF. In addition, the Company produces a limited edition supercar, LaFerrari, and limited series and one-off cars. It licenses its Ferrari brand to various produces and retailers of goods. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China). The Company is active in over 60 markets worldwide through a network of 182 authorized dealers operating 204 points of sale. The Company operates as a subsidiary of Fiat Chrysler Automobiles NV.
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