Ferrari (NYSE:RACE) vs. Lordstown Motors (NASDAQ:RIDE) Head-To-Head Review

Ferrari (NYSE:RACE) and Lordstown Motors (NASDAQ:RIDE) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Insider and Institutional Ownership

32.5% of Ferrari shares are owned by institutional investors. Comparatively, 12.6% of Lordstown Motors shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferrari 3 5 8 0 2.31
Lordstown Motors 2 0 3 0 2.20

Ferrari presently has a consensus target price of $214.33, indicating a potential upside of 2.45%. Lordstown Motors has a consensus target price of $26.67, indicating a potential upside of 127.53%. Given Lordstown Motors’ higher possible upside, analysts plainly believe Lordstown Motors is more favorable than Ferrari.

Valuation and Earnings

This table compares Ferrari and Lordstown Motors’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ferrari $4.22 billion 9.16 $779.32 million $4.16 50.29
Lordstown Motors N/A N/A $3.02 million N/A N/A

Ferrari has higher revenue and earnings than Lordstown Motors.

Profitability

This table compares Ferrari and Lordstown Motors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ferrari 15.50% 34.85% 8.97%
Lordstown Motors N/A -2.42% -0.61%

Risk & Volatility

Ferrari has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Lordstown Motors has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

Ferrari beats Lordstown Motors on 8 of the 10 factors compared between the two stocks.

Ferrari Company Profile

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 hypercars; 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 race tracks, 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, 2020, it had a total of 36 retail Ferrari stores, including 18 franchised stores and 18 owned stores. The company also sells its products through a network of 168 authorized dealers operating 188 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.

Lordstown Motors Company Profile

Lordstown Motors Corp., an automotive company, develops, manufactures, and sells light duty electric trucks targeted for sale to fleet customers. It primarily develops Endurance, an electric full-size pickup truck. Lordstown Motors Corp. was founded in 2019 and is based in Lordstown, Ohio.

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