Continental (OTCMKTS:CTTAY) & Ferrari (NYSE:RACE) Head to Head Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ferrari	23.00%	46.46%	16.91%
Continental	3.71%	9.84%	3.84%

Volatility & Risk

Ferrari has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Continental has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Ferrari and Continental, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrari	0	1	6	0	2.86
Continental	0	2	1	1	2.75

Ferrari currently has a consensus price target of $526.25, indicating a potential upside of 7.30%. Given Ferrari’s stronger consensus rating and higher possible upside, analysts clearly believe Ferrari is more favorable than Continental.

Valuation and Earnings

This table compares Ferrari and Continental”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	16.45	$1.65 billion	$9.45	51.90
Continental	$42.98 billion	0.42	$1.26 billion	$0.70	12.77

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

Insider & Institutional Ownership

0.0% of Continental shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Ferrari beats Continental on 10 of the 14 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 Continental

Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.