Ferrari (NYSE:RACE – Get Free Report) and Schaeffler (OTCMKTS:SCFLF – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Profitability
This table compares Ferrari and Schaeffler’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% |
| Schaeffler | -4.73% | -10.43% | -1.77% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Ferrari and Schaeffler, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ferrari | 0 | 6 | 8 | 3 | 2.82 |
| Schaeffler | 0 | 0 | 1 | 0 | 3.00 |
Valuation and Earnings
This table compares Ferrari and Schaeffler”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ferrari | $8.08 billion | 9.34 | $1.81 billion | $10.11 | 31.93 |
| Schaeffler | $19.68 billion | 0.04 | -$683.89 million | ($1.31) | -3.66 |
Ferrari has higher earnings, but lower revenue than Schaeffler. Schaeffler is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Ferrari has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Schaeffler has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
Summary
Ferrari beats Schaeffler on 11 of the 13 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 Schaeffler
Schaeffler AG, together with its subsidiaries, develops, manufactures, and sells components and system for industrial applications in Europe, the Americas, China, and the Asia Pacific. The Automotive Technologies division offers mechanical, mechatronic, and electronic components and systems for powertrain electrification used in passenger cars and commercial vehicles, such as electric motors, axle transmissions, axle drives, power electronics, hybrid modules, electromechanical and hydraulic actuators, and thermal management module; torque converters, hybrid dampers, clutches, variable valve train systems, valve-lash adjustment elements, balancer shafts, camshaft phasing systems, timing drives, and front end auxillary drives. This division provides rolling bearing application and products, such as wheel, ball, and needle roller bearings; and mechanical components and mechatronic systems for steering and other chassis applications, including Space Drive, a steer-by-wire system. The Automotive Aftermarket division offers components and repair solutions for light commercial vehicles, trucks and buses, and offroad sectors under the LuK, INA, and FAG brand names, as well as service for repair shops under the REPXPERT brand. The Industrial division develops and manufactures rotary and linear bearing solutions, drive technology components and systems, and service solutions, such as sensor-based condition monitoring systems. This division serves customers in the wind, raw materials, aerospace, rail, offroad, two wheelers, power transmission, and industrial automation sectors. The company was formerly known as INA Beteiligungsgesellschaft mit beschränkter Haftung and changed its name to Schaeffler AG in October 2014. The company was founded in 1946 and is headquartered in Herzogenaurach, Germany. Schaeffler AG is a subsidiary of IHO Verwaltungs GmbH.
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