Financial Contrast: ChargePoint (NYSE:CHPT) versus Ferrari (NYSE:RACE)

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Ferrari and ChargePoint, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrari	0	3	10	4	3.06
ChargePoint	3	8	1	0	1.83

Ferrari presently has a consensus target price of $489.47, suggesting a potential upside of 31.50%. ChargePoint has a consensus target price of $12.65, suggesting a potential upside of 79.61%. Given ChargePoint’s higher probable upside, analysts clearly believe ChargePoint is more favorable than Ferrari.

Profitability

This table compares Ferrari and ChargePoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrari	22.65%	44.20%	16.58%
ChargePoint	-59.54%	-209.46%	-21.77%

Institutional and Insider Ownership

37.8% of ChargePoint shares are held by institutional investors. 3.5% of ChargePoint shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrari	$7.23 billion	12.49	$1.65 billion	$9.90	37.60
ChargePoint	$417.08 million	0.40	-$277.07 million	($10.28)	-0.69

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

Risk & Volatility

Ferrari has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, ChargePoint has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Summary

Ferrari beats ChargePoint 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 ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.