Ferrari (NYSE:RACE – Get Free Report) and Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of current recommendations for Ferrari and Faraday Future Intelligent Electric, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ferrari | 0 | 6 | 8 | 3 | 2.82 |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
Ferrari currently has a consensus price target of $482.17, suggesting a potential upside of 27.63%. Faraday Future Intelligent Electric has a consensus price target of $5.00, suggesting a potential upside of 693.65%. Given Faraday Future Intelligent Electric’s higher probable upside, analysts clearly believe Faraday Future Intelligent Electric is more favorable than Ferrari.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ferrari | $8.08 billion | 11.33 | $1.65 billion | $10.11 | 37.37 |
| Faraday Future Intelligent Electric | $540,000.00 | 229.48 | -$355.85 million | ($1.84) | -0.34 |
Ferrari has higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Ferrari has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Faraday Future Intelligent Electric has a beta of 5.24, indicating that its share price is 424% more volatile than the S&P 500.
Institutional & Insider Ownership
71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. 0.4% of Faraday Future Intelligent 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.
Profitability
This table compares Ferrari and Faraday Future Intelligent Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ferrari | 22.36% | 44.36% | 16.68% |
| Faraday Future Intelligent Electric | -74,517.13% | -518.14% | -91.88% |
Summary
Ferrari beats Faraday Future Intelligent Electric on 10 of the 15 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. The company was founded in 1947 and is headquartered in Maranello, Italy.
About Faraday Future Intelligent Electric
Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.
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