Analyzing Ferrari (NYSE:RACE) & Aisin Seiki (OTCMKTS:ASEKY)

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

Profitability

This table compares Ferrari and Aisin Seiki’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%
Aisin Seiki	3.26%	7.21%	3.86%

Volatility & Risk

Ferrari has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Aisin Seiki has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ferrari and Aisin Seiki”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	9.18	$1.81 billion	$10.11	31.38
Aisin Seiki	$32.15 billion	0.33	$699.31 million	$1.46	9.58

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

Analyst Recommendations

This is a summary of current ratings for Ferrari and Aisin Seiki, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrari	0	6	7	3	2.81
Aisin Seiki	1	1	0	0	1.50

Ferrari currently has a consensus target price of $475.61, suggesting a potential upside of 49.92%. Given Ferrari’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ferrari is more favorable than Aisin Seiki.

Summary

Ferrari beats Aisin Seiki on 12 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 Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.