Luminar Technologies (NASDAQ:LAZR – Get Free Report) and Ferrari (NYSE:RACE – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Risk and Volatility
Luminar Technologies has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Ferrari has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Institutional & Insider Ownership
31.0% of Luminar Technologies shares are held by institutional investors. 11.2% of Luminar Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Luminar Technologies | 3 | 0 | 0 | 0 | 1.00 |
| Ferrari | 0 | 3 | 10 | 4 | 3.06 |
Luminar Technologies currently has a consensus target price of $2.00, suggesting a potential upside of 230.91%. Ferrari has a consensus target price of $489.47, suggesting a potential upside of 29.35%. Given Luminar Technologies’ higher probable upside, equities analysts clearly believe Luminar Technologies is more favorable than Ferrari.
Earnings and Valuation
This table compares Luminar Technologies and Ferrari”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Luminar Technologies | $75.39 million | 0.62 | -$273.14 million | ($4.99) | -0.12 |
| Ferrari | $7.23 billion | 12.69 | $1.65 billion | $9.90 | 38.22 |
Ferrari has higher revenue and earnings than Luminar Technologies. Luminar Technologies is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Luminar Technologies and Ferrari’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Luminar Technologies | -302.93% | N/A | -94.53% |
| Ferrari | 22.65% | 44.20% | 16.58% |
Summary
Ferrari beats Luminar Technologies on 11 of the 15 factors compared between the two stocks.
About Luminar Technologies
Luminar Technologies, Inc., an automotive technology company, provides sensor technologies and software for passenger cars and commercial trucks in North America, the Asia Pacific, Europe, and the Middle East. It operates in two segments, Autonomy Solutions and Advanced Technologies and Services. The Autonomy Solutions segment designs, manufactures, and sells laser imaging, detection, and ranging sensors or lidars, as well as related perception and autonomy software solutions primarily for original equipment manufacturers in the automobile, commercial vehicle, robo-taxi, and adjacent industries. The Advanced Technologies and Services segment develops application-specific integrated circuits, pixel-based sensors, and advanced lasers. This segment also designs, tests, and provides consulting services for non-standard integrated circuits for use in automobile and aeronautics sector, as well as government spending in military and defense activities. The company was founded in 2012 and is headquartered in Orlando, Florida.
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.
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