Ferrari (NYSE:RACE – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Risk & Volatility
Ferrari has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ferrari and Westport Fuel Systems”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ferrari | $7.23 billion | 11.35 | $1.65 billion | $9.90 | 34.18 |
| Westport Fuel Systems | $302.30 million | 0.13 | -$21.84 million | ($3.50) | -0.62 |
Ferrari has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
21.3% of Westport Fuel Systems shares are owned by institutional investors. 0.8% of Westport Fuel Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Ferrari and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ferrari | 22.65% | 44.20% | 16.58% |
| Westport Fuel Systems | -25.63% | -24.16% | -11.64% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Ferrari and Westport Fuel Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ferrari | 1 | 4 | 9 | 3 | 2.82 |
| Westport Fuel Systems | 1 | 1 | 1 | 1 | 2.50 |
Ferrari currently has a consensus target price of $480.67, suggesting a potential upside of 42.04%. Westport Fuel Systems has a consensus target price of $6.60, suggesting a potential upside of 202.75%. Given Westport Fuel Systems’ higher possible upside, analysts clearly believe Westport Fuel Systems is more favorable than Ferrari.
Summary
Ferrari beats Westport Fuel Systems on 11 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 Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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