Ferrari (NYSE:RACE – Get Rating) and Porsche Automobil (OTCMKTS:POAHY – Get Rating) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Ferrari and Porsche Automobil, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ferrari | 0 | 6 | 4 | 0 | 2.40 |
| Porsche Automobil | 0 | 2 | 4 | 0 | 2.67 |
Ferrari currently has a consensus price target of $265.40, suggesting a potential downside of 13.70%. Porsche Automobil has a consensus price target of $134.00, suggesting a potential upside of 2,193.15%. Given Porsche Automobil’s stronger consensus rating and higher probable upside, analysts plainly believe Porsche Automobil is more favorable than Ferrari.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ferrari | $5.34 billion | 10.64 | $982.60 million | $5.67 | 54.24 |
| Porsche Automobil | $122.22 million | N/A | $5.04 billion | N/A | N/A |
Porsche Automobil has lower revenue, but higher earnings than Ferrari.
Risk and Volatility
Ferrari has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Porsche Automobil has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Dividends
Ferrari pays an annual dividend of $0.51 per share and has a dividend yield of 0.2%. Porsche Automobil pays an annual dividend of $0.17 per share and has a dividend yield of 2.9%. Ferrari pays out 9.1% of its earnings in the form of a dividend. Ferrari has increased its dividend for 2 consecutive years.
Profitability
This table compares Ferrari and Porsche Automobil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ferrari | 18.68% | 39.25% | 12.89% |
| Porsche Automobil | N/A | N/A | N/A |
Summary
Porsche Automobil beats Ferrari on 6 of the 11 factors compared between the two stocks.
About Ferrari
Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers range, special series, Icona, and supercars; limited edition supercars and one-off cars; and track cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks; develops and sells a range of apparel and accessories; and operates franchised and owned Ferrari stores. The company also sells its products through a network of authorized dealers operating points of sale, as well as through its website. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.
About Porsche Automobil
Porsche Automobil Holding SE, through its subsidiaries, operates as an automobile manufacturer worldwide. It operates in two segments, Core Investments and Portfolio Investments. The company is involved in investments in the areas of mobility and industrial technology. It offers its products under the Volkswagen, Audi, SEAT, KODA, Bentley, Bugatti, Lamborghini, and Porsche brand names. The company was formerly known as Dr. Ing. h.c. F. Porsche Aktiengesellschaft and changed its name to Porsche Automobil Holding SE in November 2007. The company was founded in 2007 and is headquartered in Stuttgart, Germany.
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