Comprehensive Stock Comparison
Compare General Motors Company (GM) vs Ferrari N.V. (RACE) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | RACE | 7.0% revenue growth vs GM's -1.3% |
| Value | GM | Lower P/E (6.4x vs 33.7x) |
| Quality / Margins | RACE | 22.4% net margin vs GM's 1.8% |
| Stability / Safety | RACE | Beta 0.65 vs GM's 0.89 |
| Dividends | GM | 0.9% yield; 4-year raise streak; RACE pays no meaningful dividend |
| Momentum (1Y) | GM | +61.4% vs RACE's -17.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
General Motors is a global automotive manufacturer that designs, builds, and sells vehicles under brands like Chevrolet, Cadillac, Buick, and GMC. It generates revenue primarily from vehicle sales — with North America contributing about 80% of automotive revenue — supplemented by financing operations through GM Financial and connected services. The company's competitive advantage lies in its massive scale and manufacturing efficiency, established dealer network, and growing investments in electric vehicles and autonomous driving technology through its Cruise subsidiary.
Ferrari is an ultra-luxury automotive manufacturer that designs, engineers, and produces high-performance sports cars and limited-edition hypercars. It generates revenue primarily from vehicle sales — including sports cars, GT models, and special series — along with brand licensing, merchandise, and after-sales services like maintenance and restoration. The company's moat lies in its iconic brand heritage, racing pedigree, and exclusive production strategy that maintains scarcity and desirability.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
RACE leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). GM leads in 2 (Valuation Metrics, Analyst Outlook). 2 tied.
Financial Metrics (TTM)
GM is the larger business by revenue, generating $185.0B annually — 25.9x RACE's $7.1B. RACE is the more profitable business, keeping 22.4% of every revenue dollar as net income compared to GM's 1.8%. On growth, RACE holds the edge at +3.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | GMGeneral Motors Co… | RACEFerrari N.V. |
|---|---|---|
| RevenueTrailing 12 months | $185.0B | $7.1B |
| EBITDAEarnings before interest/tax | $17.5B | $2.6B |
| Net IncomeAfter-tax profit | $3.3B | $1.6B |
| Free Cash FlowCash after capex | $11.1B | $1.3B |
| Gross MarginGross profit ÷ Revenue | +6.3% | +51.7% |
| Operating MarginEBIT ÷ Revenue | +1.6% | +29.7% |
| Net MarginNet income ÷ Revenue | +1.8% | +22.4% |
| FCF MarginFCF ÷ Revenue | +6.0% | +17.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -5.1% | +3.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -135.3% | +0.5% |
Valuation Metrics
At 24.1x trailing earnings, GM trades at a 33% valuation discount to RACE's 35.9x P/E. On an enterprise value basis, GM's 12.1x EV/EBITDA is more attractive than RACE's 23.8x.
| Metric | GMGeneral Motors Co… | RACEFerrari N.V. |
|---|---|---|
| Market CapShares × price | $71.2B | $67.3B |
| Enterprise ValueMkt cap + debt − cash | $180.5B | $67.3B |
| Trailing P/EPrice ÷ TTM EPS | 24.07x | 35.95x |
| Forward P/EPrice ÷ next-FY EPS est. | 6.40x | 33.72x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.61x |
| EV / EBITDAEnterprise value multiple | 12.12x | 23.80x |
| Price / SalesMarket cap ÷ Revenue | 0.38x | 7.98x |
| Price / BookPrice ÷ Book value/share | 1.21x | 15.19x |
| Price / FCFMarket cap ÷ FCF | 6.43x | — |
Profitability & Efficiency
RACE delivers a 42.3% return on equity — every $100 of shareholder capital generates $42 in annual profit, vs $5 for GM. On the Piotroski fundamental quality scale (0–9), GM scores 6/9 vs RACE's 2/9, reflecting solid financial health.
| Metric | GMGeneral Motors Co… | RACEFerrari N.V. |
|---|---|---|
| ROE (TTM)Return on equity | +5.2% | +42.3% |
| ROA (TTM)Return on assets | +1.2% | — |
| ROICReturn on invested capital | +1.3% | +35.4% |
| ROCEReturn on capital employed | +1.6% | — |
| Piotroski ScoreFundamental quality 0–9 | 6 | 2 |
| Debt / EquityFinancial leverage | 2.06x | — |
| Net DebtTotal debt minus cash | $109.3B | $0 |
| Cash & Equiv.Liquid assets | $20.9B | — |
| Total DebtShort + long-term debt | $130.3B | $0 |
| Interest CoverageEBIT ÷ Interest expense | 3.79x | 48.77x |
Total Returns (with DRIP)
A $10,000 investment in RACE five years ago would be worth $19,750 today (with dividends reinvested), compared to $15,284 for GM. Over the past 12 months, GM leads with a +61.4% total return vs RACE's -17.5%. The 3-year compound annual growth rate (CAGR) favors GM at 27.4% vs RACE's 14.2% — a key indicator of consistent wealth creation.
| Metric | GMGeneral Motors Co… | RACEFerrari N.V. |
|---|---|---|
| YTD ReturnYear-to-date | -2.8% | +2.2% |
| 1-Year ReturnPast 12 months | +61.4% | -17.5% |
| 3-Year ReturnCumulative with dividends | +106.8% | +49.0% |
| 5-Year ReturnCumulative with dividends | +52.8% | +97.5% |
| 10-Year ReturnCumulative with dividends | +194.7% | +939.8% |
| CAGR (3Y)Annualised 3-year return | +27.4% | +14.2% |
Risk & Volatility
RACE is the less volatile stock with a 0.65 beta — it tends to amplify market swings less than GM's 0.89 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GM currently trades 89.8% from its 52-week high vs RACE's 73.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GMGeneral Motors Co… | RACEFerrari N.V. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.89x | 0.65x |
| 52-Week HighHighest price in past year | $87.62 | $519.10 |
| 52-Week LowLowest price in past year | $41.60 | $328.00 |
| % of 52W HighCurrent price vs 52-week peak | +89.8% | +73.2% |
| RSI (14)Momentum oscillator 0–100 | 47.7 | 58.7 |
| Avg Volume (50D)Average daily shares traded | 6.8M | 664K |
Analyst Outlook
Wall Street rates GM as "Buy" and RACE as "Buy". Consensus price targets imply 24.5% upside for RACE (target: $473) vs 14.3% for GM (target: $90). GM is the only dividend payer here at 0.86% yield — a key consideration for income-focused portfolios.
| Metric | GMGeneral Motors Co… | RACEFerrari N.V. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $89.93 | $472.85 |
| # AnalystsCovering analysts | 51 | 19 |
| Dividend YieldAnnual dividend ÷ price | +0.9% | — |
| Dividend StreakConsecutive years of raises | 4 | 3 |
| Dividend / ShareAnnual DPS | $0.68 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +8.5% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| General Motors Comp… (GM) | 100 | 268.2 | +168.2% |
| Ferrari N.V. (RACE) | 100 | 208.63 | +108.6% |
Ferrari N.V. (RACE) returned +98% over 5 years vs General Motors Comp… (GM)'s +53%. A $10,000 investment in RACE 5 years ago would be worth $19,750 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| General Motors Comp… (GM) | $166.4B | $185.0B | +11.2% |
| Ferrari N.V. (RACE) | $3.1B | $7.1B | +130.1% |
General Motors Company's revenue grew from $166.4B (2016) to $185.0B (2025) — a 1.2% CAGR. Ferrari N.V.'s revenue grew from $3.1B (2016) to $7.1B (2025) — a 9.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| General Motors Comp… (GM) | 5.7% | 1.5% | -74.3% |
| Ferrari N.V. (RACE) | 12.8% | 22.4% | +74.3% |
General Motors Company's net margin went from 6% (2016) to 1% (2025). Ferrari N.V.'s net margin went from 13% (2016) to 22% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| General Motors Comp… (GM) | 6 | 24.9 | +315.0% |
| Ferrari N.V. (RACE) | 37.2 | 41.2 | +10.8% |
General Motors Company has traded in a 5x–25x P/E range over 8 years; current trailing P/E is ~24x. Ferrari N.V. has traded in a 24x–70x P/E range over 9 years; current trailing P/E is ~36x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| General Motors Comp… (GM) | 6 | 3.27 | -45.5% |
| Ferrari N.V. (RACE) | 2.11 | 8.96 | +324.6% |
General Motors Company's EPS grew from $6.00 (2016) to $3.27 (2025) — a -7% CAGR. Ferrari N.V.'s EPS grew from $2.11 (2016) to $8.96 (2025) — a 17% CAGR.
Chart 6Free Cash Flow — 5 Years
General Motors Company generated $11B FCF in 2025 (+260% vs 2021). Ferrari N.V. generated $0M FCF in 2025 (-100% vs 2021).
GM vs RACE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is GM or RACE a better buy right now?
General Motors Company (GM) offers the better valuation at 24.1x trailing P/E (6.4x forward), making it the more compelling value choice. Analysts rate General Motors Company (GM) a "Buy" — based on 51 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — GM or RACE?
On trailing P/E, General Motors Company (GM) is the cheapest at 24.1x versus Ferrari N.V. at 35.9x. On forward P/E, General Motors Company is actually cheaper at 6.4x.
03Which is the better long-term investment — GM or RACE?
Over the past 5 years, Ferrari N.V. (RACE) delivered a total return of +97.5%, compared to +52.8% for General Motors Company (GM). A $10,000 investment in RACE five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: RACE returned +939.8% versus GM's +194.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — GM or RACE?
By beta (market sensitivity over 5 years), Ferrari N.V. (RACE) is the lower-risk stock at 0.65β versus General Motors Company's 0.89β — meaning GM is approximately 36% more volatile than RACE relative to the S&P 500.
05Which has better profit margins — GM or RACE?
Ferrari N.V. (RACE) is the more profitable company, earning 22.4% net margin versus 1.5% for General Motors Company — meaning it keeps 22.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RACE leads at 29.5% versus 1.6% for GM. At the gross margin level — before operating expenses — RACE leads at 51.7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is GM or RACE more undervalued right now?
On forward earnings alone, General Motors Company (GM) trades at 6.4x forward P/E versus 33.7x for Ferrari N.V. — 27.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RACE: 24.5% to $472.85.
07Which pays a better dividend — GM or RACE?
In this comparison, GM (0.9% yield) pays a dividend. RACE does not pay a meaningful dividend and should not be held primarily for income.
08Is GM or RACE better for a retirement portfolio?
For long-horizon retirement investors, Ferrari N.V. (RACE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.65), +939.8% 10Y return). Both have compounded well over 10 years (RACE: +939.8%, GM: +194.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between GM and RACE?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. GM pays a dividend while RACE does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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