Critical Survey: Ferrari (NYSE:RACE) & Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS:BMWYY)

Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS:BMWYY) and Ferrari (NYSE:RACE) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings for Bayerische Motoren Werke Aktiengesellschaft and Ferrari, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke Aktiengesellschaft	0	0	0	0	0.00
Ferrari	0	6	10	3	2.84

Ferrari has a consensus target price of $477.15, suggesting a potential upside of 13.38%. Given Ferrari’s stronger consensus rating and higher probable upside, analysts clearly believe Ferrari is more favorable than Bayerische Motoren Werke Aktiengesellschaft.

Earnings and Valuation

This table compares Bayerische Motoren Werke Aktiengesellschaft and Ferrari”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bayerische Motoren Werke Aktiengesellschaft	$168.28 billion	0.31	$12.22 billion	$4.67	6.25
Ferrari	$8.08 billion	12.18	$1.81 billion	$10.77	39.08

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

Institutional and Insider Ownership

0.0% of Bayerische Motoren Werke Aktiengesellschaft shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Bayerische Motoren Werke Aktiengesellschaft has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Ferrari has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Bayerische Motoren Werke Aktiengesellschaft and Ferrari’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke Aktiengesellschaft	6.90%	11.39%	4.19%
Ferrari	22.29%	42.83%	16.68%

Summary

Ferrari beats Bayerische Motoren Werke Aktiengesellschaft on 10 of the 14 factors compared between the two stocks.

About Bayerische Motoren Werke Aktiengesellschaft

Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.

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.