Ferrari (NYSE:RACE) & Stagecoach Group (SAGKF) Financial Contrast

Stagecoach Group (OTCMKTS: SAGKF) and Ferrari (NYSE:RACE) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

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32.5% of Ferrari shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Stagecoach Group and Ferrari, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stagecoach Group 0 0 0 0 N/A
Ferrari 1 4 5 0 2.40

Ferrari has a consensus target price of $125.86, suggesting a potential upside of 0.61%. Given Ferrari’s higher probable upside, analysts clearly believe Ferrari is more favorable than Stagecoach Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Stagecoach Group N/A N/A N/A
Ferrari 15.74% 88.98% 13.43%

Earnings and Valuation

This table compares Stagecoach Group and Ferrari’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stagecoach Group $5.34 billion 0.19 $183.47 million $0.32 5.63
Ferrari $3.86 billion 6.12 $605.15 million $3.19 39.21

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

Dividends

Ferrari pays an annual dividend of $0.68 per share and has a dividend yield of 0.5%. Stagecoach Group does not pay a dividend. Ferrari pays out 21.3% of its earnings in the form of a dividend.

Volatility and Risk

Stagecoach Group has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Ferrari has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Summary

Ferrari beats Stagecoach Group on 11 of the 13 factors compared between the two stocks.

About Stagecoach Group

Stagecoach Group plc, together with its subsidiaries, provides public transportation services in the United Kingdom, mainland Europe, the United States, and Canada. It operates through four segments: UK Bus (Regional Operations), UK Bus (London), North America, and UK Rail. The company offers bus, coach, train, and tram services. It operates city buses primarily in Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield, Cambridge, and Exeter through a fleet of 6,900 buses and coaches; inter-urban services linking major towns within its regional operating areas, as well as megabus.com, an inter-city coach service; and buses from 9 depots with a fleet of approximately 1,300 buses serving routes in and around east and south-east London. The company also operates bus services under contract, transit authorities, and others; commuter bus services; inter-city coach services; bus tours; charter operations; and sightseeing bus services through a fleet of approximately 2,300 vehicles in the United States and Canada. In addition, it operates South West Trains in south west England out of London Waterloo railway station, as well as Island Line services on the Isle of Wight; East Midlands main line train services to London St Pancras, regional rail services in the East Midlands area, and inter-regional services between Norwich and Liverpool; the Virgin Trains East Coast providing inter-city train services between London to Edinburgh, Newcastle, Leeds, and York; and Supertram, a light rail network incorporating three routes in the city of Sheffield. Stagecoach Group plc was founded in 1980 and is headquartered in Perth, the United Kingdom.

About Ferrari

Ferrari NV, known as New Business Netherlands NV, is an Italy-based company, incorporated in the Netherlands, that is engaged in designing, manufacturing and selling sports cars under the Ferrari brand. Its products include nine sports car models, including seven sports cars: 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A; as well as two grand tourer (GT) cars: California T and FF. In addition, the Company produces a limited edition supercar, LaFerrari, and limited series and one-off cars. It licenses its Ferrari brand to various produces and retailers of goods. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China). The Company is active in over 60 markets worldwide through a network of 182 authorized dealers operating 204 points of sale. The Company operates as a subsidiary of Fiat Chrysler Automobiles NV.

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