PHINIA (NYSE:PHIN) and Ferrari (NYSE:RACE) Financial Review

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

Risk and Volatility

Ferrari has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, PHINIA has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ferrari and PHINIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrari	0	5	10	3	2.89
PHINIA	0	5	4	1	2.60

Ferrari presently has a consensus price target of $471.97, suggesting a potential upside of 24.17%. PHINIA has a consensus price target of $75.67, suggesting a potential downside of 3.49%. Given Ferrari’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ferrari is more favorable than PHINIA.

Earnings & Valuation

This table compares Ferrari and PHINIA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrari	$8.08 billion	11.00	$1.81 billion	$10.42	36.48
PHINIA	$3.48 billion	0.83	$130.00 million	$3.58	21.90

Ferrari has higher revenue and earnings than PHINIA. PHINIA 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 Ferrari and PHINIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrari	22.22%	42.13%	16.52%
PHINIA	3.96%	13.23%	5.42%

Institutional and Insider Ownership

90.9% of PHINIA shares are held by institutional investors. 2.2% of PHINIA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Ferrari beats PHINIA 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 PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.