Custom Truck One Source (NYSE:CTOS) versus Ferrari (NYSE:RACE) Financial Survey

Ferrari (NYSE:RACE) and Custom Truck One Source (NYSE:CTOS) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk and Volatility

Ferrari has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ferrari and Custom Truck One Source”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrari	$8.08 billion	9.53	$1.81 billion	$10.11	32.55
Custom Truck One Source	$1.94 billion	0.74	-$31.05 million	($0.15)	-42.03

Ferrari has higher revenue and earnings than Custom Truck One Source. Custom Truck One Source is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

90.1% of Custom Truck One Source shares are owned by institutional investors. 4.5% of Custom Truck One Source shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Ferrari and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrari	22.36%	43.40%	16.65%
Custom Truck One Source	-1.60%	-3.88%	-0.88%

Analyst Ratings

This is a summary of current recommendations for Ferrari and Custom Truck One Source, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrari	0	6	8	3	2.82
Custom Truck One Source	2	2	3	0	2.14

Ferrari currently has a consensus target price of $475.61, suggesting a potential upside of 44.52%. Custom Truck One Source has a consensus target price of $7.40, suggesting a potential upside of 17.37%. Given Ferrari’s stronger consensus rating and higher possible upside, research analysts plainly believe Ferrari is more favorable than Custom Truck One Source.

Summary

Ferrari beats Custom Truck One Source on 12 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 Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.