Fiat Chrysler Automobiles N.V. (NYSE: FCAU) and Ferrari N.V. (NYSE:RACE) are both large-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitabiliy, risk, earnings and institutional ownership.

Valuation & Earnings

This table compares Fiat Chrysler Automobiles N.V. and Ferrari N.V.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fiat Chrysler Automobiles N.V. $125.68 billion 0.13 $11.46 billion $1.38 7.86
Ferrari N.V. $3.64 billion 4.63 $946.46 million $2.57 34.70

Fiat Chrysler Automobiles N.V. has higher revenue and earnings than Ferrari N.V.. Fiat Chrysler Automobiles N.V. is trading at a lower price-to-earnings ratio than Ferrari N.V., indicating that it is currently the more affordable of the two stocks.

Dividends

Ferrari N.V. pays an annual dividend of $0.68 per share and has a dividend yield of 0.8%. Fiat Chrysler Automobiles N.V. does not pay a dividend. Ferrari N.V. pays out 26.5% of its earnings in the form of a dividend.

Risk and Volatility

Fiat Chrysler Automobiles N.V. has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Ferrari N.V. has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Fiat Chrysler Automobiles N.V. and Ferrari N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiat Chrysler Automobiles N.V. 2 3 4 0 2.22
Ferrari N.V. 1 2 5 0 2.50

Fiat Chrysler Automobiles N.V. currently has a consensus price target of $12.90, indicating a potential upside of 19.00%. Ferrari N.V. has a consensus price target of $78.25, indicating a potential downside of 12.26%. Given Fiat Chrysler Automobiles N.V.’s higher possible upside, equities analysts plainly believe Fiat Chrysler Automobiles N.V. is more favorable than Ferrari N.V..

Insider and Institutional Ownership

29.5% of Fiat Chrysler Automobiles N.V. shares are held by institutional investors. Comparatively, 32.9% of Ferrari N.V. shares are held by institutional investors. 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 Fiat Chrysler Automobiles N.V. and Ferrari N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fiat Chrysler Automobiles N.V. 1.76% 14.39% 2.58%
Ferrari N.V. 13.70% 162.67% 11.31%

Summary

Ferrari N.V. beats Fiat Chrysler Automobiles N.V. on 10 of the 15 factors compared between the two stocks.

Ferrari N.V. Company Profile

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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