NSX vs Ferrari Which Is More Favorable?

NSX and Ferrari are both iconic brands in the automotive industry, known for their prestige and high-performance vehicles. Investing in their stocks can be a way to tap into the luxury car market and potentially reap significant returns. However, there are key differences between the two companies, including their business models, target markets, and financial performance. Understanding these differences is crucial for making informed investment decisions in either NSX or Ferrari stocks.

NSX or Ferrari?

When comparing NSX and Ferrari, 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 NSX and Ferrari.

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. NSX has a dividend yield of -%, while Ferrari has a dividend yield of 0.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NSX reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 31.34%.

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 NSX P/E ratio at 0.03 and Ferrari's P/E ratio at 55.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NSX P/B ratio is -14.18 while Ferrari's P/B ratio is 24.64.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$0.03 for NSX and $451.82 for Ferrari. Over the past year, NSX's prices ranged from A$0.01 to A$0.04, with a yearly change of 281.82%. Ferrari's prices fluctuated between $330.15 and $498.23, with a yearly change of 50.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.