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GM vs. RACE: A Head-to-Head Stock Comparison

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Here’s a clear look at GM and RACE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolGMRACE
Company NameGeneral Motors CompanyFerrari N.V.
CountryUnited StatesItaly
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryAutomobilesAutomobiles
Market Capitalization55.93 billion USD83.65 billion USD
ExchangeNYSENYSE
Listing DateNovember 18, 2010October 21, 2015
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GM and RACE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

GM vs. RACE: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGMRACE
5-Day Price Return3.96%-0.60%
13-Week Price Return19.68%-5.66%
26-Week Price Return26.92%-16.46%
52-Week Price Return20.51%-6.97%
Month-to-Date Return10.14%3.92%
Year-to-Date Return10.29%-2.91%
10-Day Avg. Volume6.77M0.28M
3-Month Avg. Volume9.53M0.31M
3-Month Volatility34.17%31.09%
Beta1.361.00

Profitability

Return on Equity (TTM)

GM

7.21%

Automobiles Industry

Max
25.70%
Q3
12.88%
Median
6.92%
Q1
0.71%
Min
-15.89%

GM’s Return on Equity of 7.21% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

RACE

45.61%

Automobiles Industry

Max
25.70%
Q3
12.88%
Median
6.92%
Q1
0.71%
Min
-15.89%

RACE’s Return on Equity of 45.61% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

GM vs. RACE: A comparison of their Return on Equity (TTM) against the Automobiles industry benchmark.

Net Profit Margin (TTM)

GM

2.54%

Automobiles Industry

Max
9.92%
Q3
5.78%
Median
3.23%
Q1
0.11%
Min
-5.31%

GM’s Net Profit Margin of 2.54% is aligned with the median group of its peers in the Automobiles industry. This indicates its ability to convert revenue into profit is typical for the sector.

RACE

22.91%

Automobiles Industry

Max
9.92%
Q3
5.78%
Median
3.23%
Q1
0.11%
Min
-5.31%

RACE’s Net Profit Margin of 22.91% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

GM vs. RACE: A comparison of their Net Profit Margin (TTM) against the Automobiles industry benchmark.

Operating Profit Margin (TTM)

GM

3.42%

Automobiles Industry

Max
13.07%
Q3
7.22%
Median
5.29%
Q1
0.43%
Min
-4.46%

GM’s Operating Profit Margin of 3.42% is around the midpoint for the Automobiles industry, indicating that its efficiency in managing core business operations is typical for the sector.

RACE

29.16%

Automobiles Industry

Max
13.07%
Q3
7.22%
Median
5.29%
Q1
0.43%
Min
-4.46%

RACE’s Operating Profit Margin of 29.16% is exceptionally high, placing it well above the typical range for the Automobiles industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

GM vs. RACE: A comparison of their Operating Profit Margin (TTM) against the Automobiles industry benchmark.

Profitability at a Glance

SymbolGMRACE
Return on Equity (TTM)7.21%45.61%
Return on Assets (TTM)1.67%16.76%
Net Profit Margin (TTM)2.54%22.91%
Operating Profit Margin (TTM)3.42%29.16%
Gross Profit Margin (TTM)10.97%51.20%

Financial Strength

Current Ratio (MRQ)

GM

1.22

Automobiles Industry

Max
2.19
Q3
1.54
Median
1.26
Q1
1.09
Min
0.48

GM’s Current Ratio of 1.22 aligns with the median group of the Automobiles industry, indicating that its short-term liquidity is in line with its sector peers.

RACE

2.08

Automobiles Industry

Max
2.19
Q3
1.54
Median
1.26
Q1
1.09
Min
0.48

RACE’s Current Ratio of 2.08 is in the upper quartile for the Automobiles industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

GM vs. RACE: A comparison of their Current Ratio (MRQ) against the Automobiles industry benchmark.

Debt-to-Equity Ratio (MRQ)

GM

2.05

Automobiles Industry

Max
2.34
Q3
1.13
Median
0.58
Q1
0.28
Min
0.06

GM’s leverage is in the upper quartile of the Automobiles industry, with a Debt-to-Equity Ratio of 2.05. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

RACE

0.89

Automobiles Industry

Max
2.34
Q3
1.13
Median
0.58
Q1
0.28
Min
0.06

RACE’s Debt-to-Equity Ratio of 0.89 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GM vs. RACE: A comparison of their Debt-to-Equity Ratio (MRQ) against the Automobiles industry benchmark.

Interest Coverage Ratio (TTM)

GM

25.00

Automobiles Industry

Max
77.87
Q3
42.86
Median
13.88
Q1
2.13
Min
-49.07

GM’s Interest Coverage Ratio of 25.00 is positioned comfortably within the norm for the Automobiles industry, indicating a standard and healthy capacity to cover its interest payments.

RACE

181.49

Automobiles Industry

Max
77.87
Q3
42.86
Median
13.88
Q1
2.13
Min
-49.07

With an Interest Coverage Ratio of 181.49, RACE demonstrates a superior capacity to service its debt, placing it well above the typical range for the Automobiles industry. This stems from either robust earnings or a conservative debt load.

GM vs. RACE: A comparison of their Interest Coverage Ratio (TTM) against the Automobiles industry benchmark.

Financial Strength at a Glance

SymbolGMRACE
Current Ratio (MRQ)1.222.08
Quick Ratio (MRQ)1.051.61
Debt-to-Equity Ratio (MRQ)2.050.89
Interest Coverage Ratio (TTM)25.00181.49

Growth

Revenue Growth

GM vs. RACE: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GM vs. RACE: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GM

1.17%

Automobiles Industry

Max
10.71%
Q3
5.39%
Median
3.14%
Q1
0.00%
Min
0.00%

GM’s Dividend Yield of 1.17% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

RACE

0.67%

Automobiles Industry

Max
10.71%
Q3
5.39%
Median
3.14%
Q1
0.00%
Min
0.00%

RACE’s Dividend Yield of 0.67% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

GM vs. RACE: A comparison of their Dividend Yield (TTM) against the Automobiles industry benchmark.

Dividend Payout Ratio (TTM)

GM

6.61%

Automobiles Industry

Max
114.43%
Q3
59.30%
Median
37.15%
Q1
16.40%
Min
0.00%

GM’s Dividend Payout Ratio of 6.61% is in the lower quartile for the Automobiles industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

RACE

44.33%

Automobiles Industry

Max
114.43%
Q3
59.30%
Median
37.15%
Q1
16.40%
Min
0.00%

RACE’s Dividend Payout Ratio of 44.33% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GM vs. RACE: A comparison of their Dividend Payout Ratio (TTM) against the Automobiles industry benchmark.

Dividend at a Glance

SymbolGMRACE
Dividend Yield (TTM)1.17%0.67%
Dividend Payout Ratio (TTM)6.61%44.33%

Valuation

Price-to-Earnings Ratio (TTM)

GM

11.38

Automobiles Industry

Max
27.69
Q3
19.99
Median
9.85
Q1
6.60
Min
4.25

GM’s P/E Ratio of 11.38 is within the middle range for the Automobiles industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

RACE

48.99

Automobiles Industry

Max
27.69
Q3
19.99
Median
9.85
Q1
6.60
Min
4.25

At 48.99, RACE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Automobiles industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

GM vs. RACE: A comparison of their Price-to-Earnings Ratio (TTM) against the Automobiles industry benchmark.

Price-to-Sales Ratio (TTM)

GM

0.29

Automobiles Industry

Max
1.52
Q3
0.84
Median
0.41
Q1
0.23
Min
0.08

GM’s P/S Ratio of 0.29 aligns with the market consensus for the Automobiles industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

RACE

11.23

Automobiles Industry

Max
1.52
Q3
0.84
Median
0.41
Q1
0.23
Min
0.08

With a P/S Ratio of 11.23, RACE trades at a valuation that eclipses even the highest in the Automobiles industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

GM vs. RACE: A comparison of their Price-to-Sales Ratio (TTM) against the Automobiles industry benchmark.

Price-to-Book Ratio (MRQ)

GM

0.71

Automobiles Industry

Max
4.25
Q3
2.00
Median
0.87
Q1
0.46
Min
0.19

GM’s P/B Ratio of 0.71 is within the conventional range for the Automobiles industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

RACE

22.78

Automobiles Industry

Max
4.25
Q3
2.00
Median
0.87
Q1
0.46
Min
0.19

At 22.78, RACE’s P/B Ratio is at an extreme premium to the Automobiles industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

GM vs. RACE: A comparison of their Price-to-Book Ratio (MRQ) against the Automobiles industry benchmark.

Valuation at a Glance

SymbolGMRACE
Price-to-Earnings Ratio (TTM)11.3848.99
Price-to-Sales Ratio (TTM)0.2911.23
Price-to-Book Ratio (MRQ)0.7122.78
Price-to-Free Cash Flow Ratio (TTM)42.1857.47