Ferrari (NYSE: RACE) and Hennessy Capital Acquisition (NASDAQ:BLBD) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Valuation and Earnings
This table compares Ferrari and Hennessy Capital Acquisition’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ferrari||$3.44 billion||6.65||$441.27 million||$2.99||40.45|
|Hennessy Capital Acquisition||$990.60 million||0.47||$28.80 million||$0.61||31.64|
Insider and Institutional Ownership
31.9% of Ferrari shares are held by institutional investors. Comparatively, 94.8% of Hennessy Capital Acquisition shares are held by institutional investors. 16.7% of Hennessy Capital Acquisition shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Ferrari and Hennessy Capital Acquisition, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hennessy Capital Acquisition||0||0||2||0||3.00|
Ferrari presently has a consensus price target of $113.20, indicating a potential downside of 6.42%. Hennessy Capital Acquisition has a consensus price target of $22.00, indicating a potential upside of 13.99%. Given Hennessy Capital Acquisition’s stronger consensus rating and higher possible upside, analysts plainly believe Hennessy Capital Acquisition is more favorable than Ferrari.
Ferrari pays an annual dividend of $0.68 per share and has a dividend yield of 0.6%. Hennessy Capital Acquisition does not pay a dividend. Ferrari pays out 22.7% of its earnings in the form of a dividend.
Risk and Volatility
Ferrari has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Hennessy Capital Acquisition has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
This table compares Ferrari and Hennessy Capital Acquisition’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hennessy Capital Acquisition||2.91%||-24.21%||9.52%|
Ferrari beats Hennessy Capital Acquisition on 10 of the 16 factors compared between the two stocks.
Ferrari NV, known as New Business Netherlands NV, is an Italy-based company, incorporated in the Netherlands, that is engaged in designing, manufacturing and selling sports cars under the Ferrari brand. Its products include nine sports car models, including seven sports cars: 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A; as well as two grand tourer (GT) cars: California T and FF. In addition, the Company produces a limited edition supercar, LaFerrari, and limited series and one-off cars. It licenses its Ferrari brand to various produces and retailers of goods. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China). The Company is active in over 60 markets worldwide through a network of 182 authorized dealers operating 204 points of sale. The Company operates as a subsidiary of Fiat Chrysler Automobiles NV.
About Hennessy Capital Acquisition
Blue Bird Corporation designs, engineers, manufactures, and sells school buses and aftermarket parts in the United States, Canada, and internationally. It offers Type C, Type D, and specialty buses, as well as Sigma, a bus for public transportation. The company sells its products through a network of dealers, as well as directly to fleet operators, the United States government, and state governments. It also distributes aftermarket parts of various makes. The company was founded in 1927 and is headquartered in Fort Valley, Georgia.
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