Lion Electric (NYSE:LEV – Get Free Report) and Ferrari (NYSE:RACE – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
Lion Electric has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Ferrari has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Profitability
This table compares Lion Electric and Ferrari’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lion Electric | 0.05% | -17.77% | -11.36% |
| Ferrari | 18.68% | 39.25% | 12.89% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lion Electric | $139.91 million | 3.87 | $17.78 million | $0.01 | 242.24 |
| Ferrari | $5.37 billion | N/A | $982.60 million | $5.67 | 57.55 |
Ferrari has higher revenue and earnings than Lion Electric. Ferrari is trading at a lower price-to-earnings ratio than Lion Electric, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Lion Electric and Ferrari, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lion Electric | 1 | 4 | 5 | 0 | 2.40 |
| Ferrari | 0 | 3 | 4 | 0 | 2.57 |
Lion Electric presently has a consensus price target of $3.67, suggesting a potential upside of 51.52%. Ferrari has a consensus price target of $304.20, suggesting a potential downside of 6.78%. Given Lion Electric’s higher probable upside, equities research analysts clearly believe Lion Electric is more favorable than Ferrari.
Institutional & Insider Ownership
42.9% of Lion Electric shares are held by institutional investors. 16.6% of Lion Electric shares are held 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.
Summary
Ferrari beats Lion Electric on 7 of the 13 factors compared between the two stocks.
About Lion Electric
The Lion Electric Company designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. The company's products include battery systems, chassis, bus bodies, and truck cabins. It also distributes truck and bus parts, as well as accessories. The Lion Electric Company was incorporated in 2008 and is based in Saint-Jérôme, Canada.
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.
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