Contrasting Cenntro (NASDAQ:CENN) and Ferrari (NYSE:RACE)

Cenntro (NASDAQ:CENN) and Ferrari (NYSE:RACE) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cenntro	-109.17%	-37.17%	-23.58%
Ferrari	22.16%	44.67%	16.54%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cenntro	0	0	0	0	0.00
Ferrari	1	1	7	0	2.67

Ferrari has a consensus target price of $507.14, indicating a potential upside of 17.32%. Given Ferrari’s stronger consensus rating and higher probable upside, analysts clearly believe Ferrari is more favorable than Cenntro.

Earnings and Valuation

This table compares Cenntro and Ferrari”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cenntro	$22.08 million	1.59	-$54.20 million	N/A	N/A
Ferrari	$6.46 billion	16.31	$1.36 billion	$8.61	50.20

Ferrari has higher revenue and earnings than Cenntro.

Risk and Volatility

Cenntro has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Ferrari has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Summary

Ferrari beats Cenntro on 9 of the 10 factors compared between the two stocks.

About Cenntro

Cenntro Inc. engages in the design, development, and manufacture of electric light and medium-duty commercial vehicles in Europe, Asia, and the United States. Its purpose-built electric commercial vehicles are designed to serve various fleet and municipal organizations in support of city services, last-mile delivery, and other commercial applications. The company sells its products under the Metro, Logistar, Logimax, Avantier, Teemak, and Antric One names. Cenntro Inc. was founded in 2013 and is headquartered in Freehold, New Jersey.

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.