Ferrari vs NSX Which Is More Promising?

Ferrari and NSX are two renowned companies in the automotive industry known for their high-performance vehicles. Investors often compare their stocks due to their strong brand presence and loyal customer base. Ferrari's stock is typically more volatile and sensitive to changes in market conditions, while NSX's stock is perceived as more stable and predictable. Both companies appeal to luxury car enthusiasts and have a strong following, making them interesting options for investors looking to capitalize on the automotive sector's growth.

Ferrari or NSX?

When comparing Ferrari and NSX, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Ferrari and NSX.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Ferrari has a dividend yield of 0.6%, while NSX has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 31.34%. On the other hand, NSX reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Ferrari P/E ratio at 53.40 and NSX's P/E ratio at 0.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ferrari P/B ratio is 23.87 while NSX's P/B ratio is -13.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ferrari has seen a 5-year revenue growth of 0.82%, while NSX's is -0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ferrari's ROE at 45.21% and NSX's ROE at -104885.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $436.01 for Ferrari and A$0.03 for NSX. Over the past year, Ferrari's prices ranged from $330.15 to $498.23, with a yearly change of 50.91%. NSX's prices fluctuated between A$0.01 and A$0.04, with a yearly change of 281.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.