Investment Comparison: Ford vs Ferrari
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy RACE?
Source: Fool
- Ford's Stock Decline: As of March 18, 2026, Ford's share price has dropped by 10%, indicating unfavorable market performance; despite its F-Series pickups being the best-selling vehicles in America for 44 consecutive years, this has not translated into strong financial results.
- Ford's Financial Outlook: Analysts project Ford's revenue to grow at a compound annual rate of less than 1.8% over the next three years, with an adjusted operating margin of only 3.6% in 2025, leading to investor disappointment regarding long-term returns.
- Ferrari's Exceptional Performance: Ferrari's stock has surged 674% over the past decade, currently trading at a forward P/E of 29.6; despite its premium price, the luxury brand's focus on wealthy buyers results in less cyclical demand and strong pricing power.
- Ferrari's Financial Strength: In 2025, Ferrari's revenue increased by 7%, with an impressive average operating margin of 27% over the past five years, highlighting its brand value and profitability, giving it a clear competitive edge over Ford.
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Analyst Views on RACE
Wall Street analysts forecast RACE stock price to rise
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 321.010
Low
349.74
Averages
448.83
High
555.00
Current: 321.010
Low
349.74
Averages
448.83
High
555.00
About RACE
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars that is incorporated in the Netherlands. It operates under the Ferrari brand. Its sports cars portfolio includes, among others, F12berlinetta, FF, Ferrari 488 GTB, 488 Spider, 458 Speciale, Ferrari California T, F12tdf and LaFerrari. The Company also offers financing services through Ferrari Financial Services. It also produces limited series and one-off cars. 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) and is active in over 60 markets worldwide through a network of authorized dealers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ferrari's Financial Outlook Analysis for 2025
- Sluggish Revenue Growth: Ferrari's revenue grew by 8% in 2025, yet the company's five-year financial targets suggest an annualized growth rate of only 5%, indicating potential future growth challenges that may dampen investor confidence.
- Margin Expansion: In 2025, Ferrari's operating margin increased by 120 basis points to 29.5%, implying that earnings per share are growing faster than revenue, showcasing the company's success in maintaining brand scarcity.
- Significant Cash Flow Increase: Ferrari generated over €1.5 billion in industrial free cash flow last year, a 50% increase from approximately €1.0 billion in the previous year, providing strong support for future shareholder returns and reinvestment.
- Share Repurchase Program: Ferrari is executing a €3.5 billion share repurchase program expected to run through 2030, which will help drive earnings per share higher by reducing the overall share count, even if top-line growth remains modest.
See More
Investment Comparison: Ford vs Ferrari
- Ford's Stock Decline: As of March 18, 2026, Ford's share price has dropped by 10%, indicating unfavorable market performance; despite its F-Series pickups being the best-selling vehicles in America for 44 consecutive years, this has not translated into strong financial results.
- Ford's Financial Outlook: Analysts project Ford's revenue to grow at a compound annual rate of less than 1.8% over the next three years, with an adjusted operating margin of only 3.6% in 2025, leading to investor disappointment regarding long-term returns.
- Ferrari's Exceptional Performance: Ferrari's stock has surged 674% over the past decade, currently trading at a forward P/E of 29.6; despite its premium price, the luxury brand's focus on wealthy buyers results in less cyclical demand and strong pricing power.
- Ferrari's Financial Strength: In 2025, Ferrari's revenue increased by 7%, with an impressive average operating margin of 27% over the past five years, highlighting its brand value and profitability, giving it a clear competitive edge over Ford.
See More
Comparison of Ford and Ferrari Stock Performance
- Ford's Market Position: Ford's F-Series pickups were once again the best-selling vehicles in America in 2025, maintaining this position for 44 consecutive years; however, its stock price has dropped 10% in 2026, indicating poor long-term financial performance.
- Weak Financial Growth: Analysts project Ford's revenue to grow at a compound annual rate of less than 1.8% over the next three years, with an adjusted operating margin of only 3.6% in 2025, leading to investor disappointment regarding future returns.
- Ferrari's Brand Power: Ferrari's stock has surged 674% over the past decade, currently trading at a forward P/E of 29.6; despite its high valuation, its focus on the luxury market results in less cyclical demand, showcasing strong pricing power.
- Profitability Comparison: Ferrari achieved a 7% revenue increase in 2025, with an average operating margin of 27% over the past five years, highlighting its advantages in brand strength, pricing power, and steady growth, positioning it to deliver higher returns for shareholders in the next five years.
See More
Investment Comparison: Ford vs. Ferrari
- Ford's Stock Decline: As of March 18, 2026, Ford's stock has dropped 10%, indicating a decline in market competitiveness; despite its F-Series pickups being the best-selling vehicles in America for 44 consecutive years, this has not translated into strong financial performance.
- Ferrari's Strong Financials: Over the past decade, Ferrari's stock has surged 674%, and its revenue increased by 7% in 2025, demonstrating robust pricing power and stable growth potential, even amidst challenges from shifting trade policies.
- Valuation Discrepancies: Ford's forward P/E ratio stands at 8.1, indicating a cheap valuation, but its lack of growth results in poor investor returns; in contrast, Ferrari's forward P/E is 29.6, suggesting a premium valuation that reflects its brand strength and scarcity, making it a more attractive investment option.
- Investor Return Comparison: Ford has only delivered a total return of 50% over the past decade, while Ferrari, with its brand and pricing power, is expected to generate higher returns for shareholders in the next five years, highlighting Ferrari's clear investment advantage.
See More
Ferrari Halts Shipments to Middle East Amid Conflict
- Middle East Impact: Ferrari has halted all shipments to the Middle East due to regional conflict, which, while accounting for less than 5% of total sales, provides the highest profit margins due to wealthy buyers' preference for customized high-end models, significantly impacting profitability.
- Market Share Challenges: In light of declining market share in China and U.S. tariff pressures, Ferrari is shifting focus to oil-rich nations like the UAE, Saudi Arabia, and Qatar to compensate for losses in the U.S. and China, indicating a critical strategic pivot.
- Competitor Reactions: Other luxury automakers, including Mercedes-Benz, BMW, and Porsche, have not yet adjusted production or deliveries but are closely monitoring the conflict's potential impact on demand, highlighting the uncertainty in the luxury vehicle market.
- Stock Price Volatility: Since the onset of the Iran conflict, Ferrari's shares have dropped 16%, reaching a two-year low, mirroring similar declines in shares of Mercedes-Benz, Porsche, and BMW, reflecting market concerns over luxury vehicle demand.
See More
Ferrari Stock Pullback: A Potential Buying Opportunity
- Stock Pullback Analysis: Ferrari's stock has fallen approximately 29% over the past six months, retreating from its 52-week high, reflecting market concerns over the company's future five-year financial targets, although its underlying business remains strong.
- Cautious Financial Targets: At its Capital Markets Day, Ferrari projected net revenue of about €9 billion by 2030, representing only a 5% growth rate compared to €7.15 billion in 2025, a significant drop from previous double-digit growth, highlighting the company's commitment to its scarcity-driven business model.
- Profitability Improvement: In 2025, Ferrari's operating margin expanded by 120 basis points year-over-year to 29.5%, indicating that earnings per share are growing faster than revenue, demonstrating the company's ability to enhance profitability while maintaining brand equity.
- New Model Driving Growth: The newly launched F80 supercar began deliveries late last year and is expected to provide strong revenue and earnings growth through 2026, with all units pre-sold and the order book extending into 2027, indicating robust market demand.
See More
Ferrari's Financial Outlook Analysis for 2025
- Sluggish Revenue Growth: Ferrari's revenue grew by 8% in 2025, yet the company's five-year financial targets suggest an annualized growth rate of only 5%, indicating potential future growth challenges that may dampen investor confidence.
- Margin Expansion: In 2025, Ferrari's operating margin increased by 120 basis points to 29.5%, implying that earnings per share are growing faster than revenue, showcasing the company's success in maintaining brand scarcity.
- Significant Cash Flow Increase: Ferrari generated over €1.5 billion in industrial free cash flow last year, a 50% increase from approximately €1.0 billion in the previous year, providing strong support for future shareholder returns and reinvestment.
- Share Repurchase Program: Ferrari is executing a €3.5 billion share repurchase program expected to run through 2030, which will help drive earnings per share higher by reducing the overall share count, even if top-line growth remains modest.
See More
Investment Comparison: Ford vs Ferrari
- Ford's Stock Decline: As of March 18, 2026, Ford's share price has dropped by 10%, indicating unfavorable market performance; despite its F-Series pickups being the best-selling vehicles in America for 44 consecutive years, this has not translated into strong financial results.
- Ford's Financial Outlook: Analysts project Ford's revenue to grow at a compound annual rate of less than 1.8% over the next three years, with an adjusted operating margin of only 3.6% in 2025, leading to investor disappointment regarding long-term returns.
- Ferrari's Exceptional Performance: Ferrari's stock has surged 674% over the past decade, currently trading at a forward P/E of 29.6; despite its premium price, the luxury brand's focus on wealthy buyers results in less cyclical demand and strong pricing power.
- Ferrari's Financial Strength: In 2025, Ferrari's revenue increased by 7%, with an impressive average operating margin of 27% over the past five years, highlighting its brand value and profitability, giving it a clear competitive edge over Ford.
See More
Comparison of Ford and Ferrari Stock Performance
- Ford's Market Position: Ford's F-Series pickups were once again the best-selling vehicles in America in 2025, maintaining this position for 44 consecutive years; however, its stock price has dropped 10% in 2026, indicating poor long-term financial performance.
- Weak Financial Growth: Analysts project Ford's revenue to grow at a compound annual rate of less than 1.8% over the next three years, with an adjusted operating margin of only 3.6% in 2025, leading to investor disappointment regarding future returns.
- Ferrari's Brand Power: Ferrari's stock has surged 674% over the past decade, currently trading at a forward P/E of 29.6; despite its high valuation, its focus on the luxury market results in less cyclical demand, showcasing strong pricing power.
- Profitability Comparison: Ferrari achieved a 7% revenue increase in 2025, with an average operating margin of 27% over the past five years, highlighting its advantages in brand strength, pricing power, and steady growth, positioning it to deliver higher returns for shareholders in the next five years.
See More
Investment Comparison: Ford vs. Ferrari
- Ford's Stock Decline: As of March 18, 2026, Ford's stock has dropped 10%, indicating a decline in market competitiveness; despite its F-Series pickups being the best-selling vehicles in America for 44 consecutive years, this has not translated into strong financial performance.
- Ferrari's Strong Financials: Over the past decade, Ferrari's stock has surged 674%, and its revenue increased by 7% in 2025, demonstrating robust pricing power and stable growth potential, even amidst challenges from shifting trade policies.
- Valuation Discrepancies: Ford's forward P/E ratio stands at 8.1, indicating a cheap valuation, but its lack of growth results in poor investor returns; in contrast, Ferrari's forward P/E is 29.6, suggesting a premium valuation that reflects its brand strength and scarcity, making it a more attractive investment option.
- Investor Return Comparison: Ford has only delivered a total return of 50% over the past decade, while Ferrari, with its brand and pricing power, is expected to generate higher returns for shareholders in the next five years, highlighting Ferrari's clear investment advantage.
See More
Ferrari Halts Shipments to Middle East Amid Conflict
- Middle East Impact: Ferrari has halted all shipments to the Middle East due to regional conflict, which, while accounting for less than 5% of total sales, provides the highest profit margins due to wealthy buyers' preference for customized high-end models, significantly impacting profitability.
- Market Share Challenges: In light of declining market share in China and U.S. tariff pressures, Ferrari is shifting focus to oil-rich nations like the UAE, Saudi Arabia, and Qatar to compensate for losses in the U.S. and China, indicating a critical strategic pivot.
- Competitor Reactions: Other luxury automakers, including Mercedes-Benz, BMW, and Porsche, have not yet adjusted production or deliveries but are closely monitoring the conflict's potential impact on demand, highlighting the uncertainty in the luxury vehicle market.
- Stock Price Volatility: Since the onset of the Iran conflict, Ferrari's shares have dropped 16%, reaching a two-year low, mirroring similar declines in shares of Mercedes-Benz, Porsche, and BMW, reflecting market concerns over luxury vehicle demand.
See More
Ferrari Stock Pullback: A Potential Buying Opportunity
- Stock Pullback Analysis: Ferrari's stock has fallen approximately 29% over the past six months, retreating from its 52-week high, reflecting market concerns over the company's future five-year financial targets, although its underlying business remains strong.
- Cautious Financial Targets: At its Capital Markets Day, Ferrari projected net revenue of about €9 billion by 2030, representing only a 5% growth rate compared to €7.15 billion in 2025, a significant drop from previous double-digit growth, highlighting the company's commitment to its scarcity-driven business model.
- Profitability Improvement: In 2025, Ferrari's operating margin expanded by 120 basis points year-over-year to 29.5%, indicating that earnings per share are growing faster than revenue, demonstrating the company's ability to enhance profitability while maintaining brand equity.
- New Model Driving Growth: The newly launched F80 supercar began deliveries late last year and is expected to provide strong revenue and earnings growth through 2026, with all units pre-sold and the order book extending into 2027, indicating robust market demand.
See More
