Analyzing Ferrari (NYSE:RACE) and REE Automotive (NASDAQ:REE)

REE Automotive (NASDAQ:REEGet Rating) and Ferrari (NYSE:RACEGet Rating) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares REE Automotive and Ferrari’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REE Automotive N/A -281.94% -188.57%
Ferrari 19.47% 40.53% 12.83%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for REE Automotive and Ferrari, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REE Automotive 2 0 3 0 2.20
Ferrari 2 2 11 0 2.60

REE Automotive currently has a consensus price target of $9.40, indicating a potential upside of 377.16%. Ferrari has a consensus price target of $258.60, indicating a potential upside of 17.55%. Given REE Automotive’s higher probable upside, analysts plainly believe REE Automotive is more favorable than Ferrari.

Institutional & Insider Ownership

15.0% of REE Automotive shares are held by institutional investors. Comparatively, 38.8% of Ferrari shares are held by institutional investors. 6.0% of REE Automotive shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares REE Automotive and Ferrari’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
REE Automotive $10,000.00 62,582.96 -$505.33 million N/A N/A
Ferrari $5.05 billion 8.04 $982.88 million $5.32 41.35

Ferrari has higher revenue and earnings than REE Automotive.

Risk & Volatility

REE Automotive has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Ferrari has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

Ferrari beats REE Automotive on 8 of the 12 factors compared between the two stocks.

About REE Automotive (Get Rating)

REE Automotive Ltd. operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard, a flat and modular EV chassis. The company is headquartered in Herzliya, Israel.

About Ferrari (Get Rating)

Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores. The company also sells its products through a network of 172 authorized dealers operating 191 points of sale worldwide, as well as through its website, store.ferrari.com. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.

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