Analyzing Ferrari (NYSE:RACE) and Aisin Seiki (OTCMKTS:ASEKY)

Aisin Seiki (OTCMKTS:ASEKY) and Ferrari (NYSE:RACE) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Volatility and Risk

Aisin Seiki has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Ferrari has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Profitability

This table compares Aisin Seiki and Ferrari’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aisin Seiki	3.26%	7.21%	3.86%
Ferrari	22.36%	43.40%	16.65%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Aisin Seiki and Ferrari, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aisin Seiki	1	1	0	0	1.50
Ferrari	0	5	8	3	2.88

Ferrari has a consensus target price of $469.06, suggesting a potential upside of 37.84%. Given Ferrari’s stronger consensus rating and higher probable upside, analysts plainly believe Ferrari is more favorable than Aisin Seiki.

Earnings & Valuation

This table compares Aisin Seiki and Ferrari”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aisin Seiki	$32.15 billion	0.33	$699.31 million	$1.46	9.53
Ferrari	$8.08 billion	9.85	$1.81 billion	$10.11	33.66

Ferrari has lower revenue, but higher earnings than Aisin Seiki. Aisin Seiki is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.

Summary

Ferrari beats Aisin Seiki on 12 of the 13 factors compared between the two stocks.

About Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.

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. The company was founded in 1947 and is headquartered in Maranello, Italy.