RACE vs TM

For growth investors, Ferrari N.

V. (RACE) is the stronger pick with 7. 0% revenue growth year-over-year, versus 6. 5% for Toyota Motor Corporation (TM). Toyota Motor Corporation (TM) offers the better valuation at 8. 5x trailing P/E (0. 1x forward), making it the more compelling value choice. Analysts rate Ferrari N. V. (RACE) a "Buy" — based on 19 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.

On trailing P/E, Toyota Motor Corporation (TM) is the cheapest at 8.

5x versus Ferrari N. V. at 32. 0x. On forward P/E, Toyota Motor Corporation is actually cheaper at 0. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Toyota Motor Corporation wins at 0. 00x versus Ferrari N. V. 's 1. 54x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Ferrari N.

V. (RACE) delivered a total return of +77. 0%, compared to +41. 9% for Toyota Motor Corporation (TM). Over 10 years, the gap is even starker: RACE returned +732. 1% versus TM's +132. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ferrari N.

V. (RACE) is the lower-risk stock at 0. 78β versus Toyota Motor Corporation's 1. 06β — meaning TM is approximately 36% more volatile than RACE relative to the S&P 500. On balance sheet safety, Ferrari N. V. (RACE) carries a lower debt/equity ratio of 74% versus 105% for Toyota Motor Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ferrari N.

V. (RACE) is pulling ahead at 7. 0% versus 6. 5% for Toyota Motor Corporation (TM). On earnings-per-share growth, the picture is similar: Ferrari N. V. grew EPS 5. 9% year-over-year, compared to -1. 7% for Toyota Motor Corporation. Over a 3-year CAGR, TM leads at 15. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Ferrari N.

V. (RACE) is the more profitable company, earning 22. 3% net margin versus 9. 9% for Toyota Motor Corporation — meaning it keeps 22. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RACE leads at 29. 5% versus 10. 0% for TM. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Toyota Motor Corporation (TM) is the more undervalued stock at a PEG of 0. 00x versus Ferrari N. V. 's 1. 54x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Toyota Motor Corporation (TM) trades at 0. 1x forward P/E versus 34. 2x for Ferrari N. V. — 34. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RACE: 35. 8% to $456. 78.

All stocks in this comparison pay dividends.

Toyota Motor Corporation (TM) offers the highest yield at 2. 8%, versus 2. 1% for Ferrari N. V. (RACE).

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. 78), 2. 1% yield, +732. 1% 10Y return). Both have compounded well over 10 years (RACE: +732. 1%, TM: +132. 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.

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.

In terms of investment character: RACE is a mid-cap quality compounder stock; TM is a large-cap deep-value stock. 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.