Comprehensive Stock Comparison
Compare Ferrari N.V. (RACE) vs Toyota Motor Corporation (TM) 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 TM's 6.5% |
| Value | TM | Lower P/E (0.1x vs 33.7x), PEG 0.00 vs 1.51 |
| Quality / Margins | RACE | 22.4% net margin vs TM's 9.4% |
| Stability / Safety | RACE | Beta 0.65 vs TM's 0.93 |
| Dividends | TM | 2.3% yield; 4-year raise streak; RACE pays no meaningful dividend |
| Momentum (1Y) | TM | +36.7% vs RACE's -17.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
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.
Toyota is one of the world's largest automakers, manufacturing and selling vehicles across nearly every segment — from compact cars to luxury sedans and trucks. It generates most of its revenue from automotive sales (around 90%), supplemented by financial services (about 8%) that provide financing and leasing to customers. The company's key advantage is its legendary manufacturing efficiency — particularly the Toyota Production System — which delivers industry-leading quality and cost control while pioneering hybrid technology with its Prius platform.
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
TM leads in 3 of 6 categories (Valuation Metrics, Total Returns). RACE leads in 2 (Financial Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
TM is the larger business by revenue, generating $49.39T annually — 6910.4x RACE's $7.1B. RACE is the more profitable business, keeping 22.4% of every revenue dollar as net income compared to TM's 9.4%. On growth, TM holds the edge at +8.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | RACEFerrari N.V. | TMToyota Motor Corp… |
|---|---|---|
| RevenueTrailing 12 months | $7.1B | $49.39T |
| EBITDAEarnings before interest/tax | $2.6B | $6.59T |
| Net IncomeAfter-tax profit | $1.6B | $4.63T |
| Free Cash FlowCash after capex | $1.3B | $147.8B |
| Gross MarginGross profit ÷ Revenue | +51.7% | +18.0% |
| Operating MarginEBIT ÷ Revenue | +29.7% | +8.8% |
| Net MarginNet income ÷ Revenue | +22.4% | +9.4% |
| FCF MarginFCF ÷ Revenue | +17.5% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +3.8% | +8.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +0.5% | +65.7% |
Valuation Metrics
At 10.5x trailing earnings, TM trades at a 71% valuation discount to RACE's 35.9x P/E. Adjusting for growth (PEG ratio), TM offers better value at 0.52x vs RACE's 1.61x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | RACEFerrari N.V. | TMToyota Motor Corp… |
|---|---|---|
| Market CapShares × price | $67.3B | $315.9B |
| Enterprise ValueMkt cap + debt − cash | $67.3B | $506.8B |
| Trailing P/EPrice ÷ TTM EPS | 35.95x | 10.53x |
| Forward P/EPrice ÷ next-FY EPS est. | 33.72x | 0.08x |
| PEG RatioP/E ÷ EPS growth rate | 1.61x | 0.52x |
| EV / EBITDAEnterprise value multiple | 23.80x | 11.23x |
| Price / SalesMarket cap ÷ Revenue | 7.98x | 1.03x |
| Price / BookPrice ÷ Book value/share | 15.19x | 1.35x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
RACE delivers a 42.3% return on equity — every $100 of shareholder capital generates $42 in annual profit, vs $12 for TM. On the Piotroski fundamental quality scale (0–9), TM scores 5/9 vs RACE's 2/9, reflecting solid financial health.
| Metric | RACEFerrari N.V. | TMToyota Motor Corp… |
|---|---|---|
| ROE (TTM)Return on equity | +42.3% | +12.0% |
| ROA (TTM)Return on assets | — | +4.7% |
| ROICReturn on invested capital | +35.4% | +5.6% |
| ROCEReturn on capital employed | — | +7.7% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 5 |
| Debt / EquityFinancial leverage | — | 1.05x |
| Net DebtTotal debt minus cash | $0 | $29.81T |
| Cash & Equiv.Liquid assets | — | $8.98T |
| Total DebtShort + long-term debt | $0 | $38.79T |
| Interest CoverageEBIT ÷ Interest expense | 48.77x | 38.49x |
Total Returns (with DRIP)
A $10,000 investment in RACE five years ago would be worth $19,750 today (with dividends reinvested), compared to $17,804 for TM. Over the past 12 months, TM leads with a +36.7% total return vs RACE's -17.5%. The 3-year compound annual growth rate (CAGR) favors TM at 23.7% vs RACE's 14.2% — a key indicator of consistent wealth creation.
| Metric | RACEFerrari N.V. | TMToyota Motor Corp… |
|---|---|---|
| YTD ReturnYear-to-date | +2.2% | +11.2% |
| 1-Year ReturnPast 12 months | -17.5% | +36.7% |
| 3-Year ReturnCumulative with dividends | +49.0% | +89.4% |
| 5-Year ReturnCumulative with dividends | +97.5% | +78.0% |
| 10-Year ReturnCumulative with dividends | +939.8% | +174.4% |
| CAGR (3Y)Annualised 3-year return | +14.2% | +23.7% |
Risk & Volatility
RACE is the less volatile stock with a 0.65 beta — it tends to amplify market swings less than TM's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TM currently trades 97.4% from its 52-week high vs RACE's 73.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RACEFerrari N.V. | TMToyota Motor Corp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.65x | 0.93x |
| 52-Week HighHighest price in past year | $519.10 | $248.90 |
| 52-Week LowLowest price in past year | $328.00 | $155.00 |
| % of 52W HighCurrent price vs 52-week peak | +73.2% | +97.4% |
| RSI (14)Momentum oscillator 0–100 | 58.7 | 59.2 |
| Avg Volume (50D)Average daily shares traded | 664K | 254K |
Analyst Outlook
Wall Street rates RACE as "Buy" and TM as "Hold". Consensus price targets imply 24.5% upside for RACE (target: $473) vs -26.0% for TM (target: $179). TM is the only dividend payer here at 2.28% yield — a key consideration for income-focused portfolios.
| Metric | RACEFerrari N.V. | TMToyota Motor Corp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $472.85 | $179.41 |
| # AnalystsCovering analysts | 19 | 15 |
| Dividend YieldAnnual dividend ÷ price | — | +2.3% |
| Dividend StreakConsecutive years of raises | 3 | 4 |
| Dividend / ShareAnnual DPS | — | $863.50 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.4% |
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 |
|---|---|---|---|
| Ferrari N.V. (RACE) | 100 | 208.63 | +108.6% |
| Toyota Motor Corpor… (TM) | 100 | 174.5 | +74.5% |
Ferrari N.V. (RACE) returned +98% over 5 years vs Toyota Motor Corpor… (TM)'s +78%. 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 |
|---|---|---|---|
| Ferrari N.V. (RACE) | $3.1B | $7.1B | +130.1% |
| Toyota Motor Corpor… (TM) | $28.4T | $48.0T | +69.1% |
Ferrari N.V.'s revenue grew from $3.1B (2016) to $7.1B (2025) — a 9.7% CAGR. Toyota Motor Corporation's revenue grew from $28.4T (2016) to $48.0T (2025) — a 6.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ferrari N.V. (RACE) | 12.8% | 22.4% | +74.3% |
| Toyota Motor Corpor… (TM) | 8.1% | 9.9% | +21.8% |
Ferrari N.V.'s net margin went from 13% (2016) to 22% (2025). Toyota Motor Corporation's net margin went from 8% (2016) to 10% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Ferrari N.V. (RACE) | 37.2 | 41.2 | +10.8% |
| Toyota Motor Corpor… (TM) | 0.1 | 0.1 | +0.0% |
Ferrari N.V. has traded in a 24x–70x P/E range over 9 years; current trailing P/E is ~36x. Toyota Motor Corporation has traded in a 0x–0x P/E range over 9 years; current trailing P/E is ~11x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ferrari N.V. (RACE) | 2.11 | 8.96 | +324.6% |
| Toyota Motor Corpor… (TM) | 1,470.7 | 3,595.6 | +144.5% |
Ferrari N.V.'s EPS grew from $2.11 (2016) to $8.96 (2025) — a 17% CAGR. Toyota Motor Corporation's EPS grew from $1470.70 (2016) to $3595.60 (2025) — a 10% CAGR.
Chart 6Free Cash Flow — 5 Years
Ferrari N.V. generated $0M FCF in 2025 (-100% vs 2021). Toyota Motor Corporation generated $-1.6T FCF in 2025 (-21617% vs 2021).
RACE vs TM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RACE or TM a better buy right now?
Toyota Motor Corporation (TM) offers the better valuation at 10.5x 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.
02Which has the better valuation — RACE or TM?
On trailing P/E, Toyota Motor Corporation (TM) is the cheapest at 10.5x versus Ferrari N.V. at 35.9x. 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 1.51x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — RACE or TM?
Over the past 5 years, Ferrari N.V. (RACE) delivered a total return of +97.5%, compared to +78.0% for Toyota Motor Corporation (TM). 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 TM's +174.4%. 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 — RACE or TM?
By beta (market sensitivity over 5 years), Ferrari N.V. (RACE) is the lower-risk stock at 0.65β versus Toyota Motor Corporation's 0.93β — meaning TM is approximately 42% more volatile than RACE relative to the S&P 500.
05Which has better profit margins — RACE or TM?
Ferrari N.V. (RACE) is the more profitable company, earning 22.4% net margin versus 9.9% for Toyota Motor Corporation — 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 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.
06Is RACE or TM more undervalued right now?
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 1.51x. 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 33.7x for Ferrari N.V. — 33.6x 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 — RACE or TM?
In this comparison, TM (2.3% yield) pays a dividend. RACE does not pay a meaningful dividend and should not be held primarily for income.
08Is RACE or TM 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%, TM: +174.4%), 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 RACE and TM?
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. TM 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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