Critical Analysis: Hennessy Capital Acquisition (BLBD) versus Ferrari (RACE)

Hennessy Capital Acquisition (NASDAQ: BLBD) and Ferrari (NYSE:RACE) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

94.8% of Hennessy Capital Acquisition shares are owned by institutional investors. Comparatively, 31.9% of Ferrari shares are owned by institutional investors. 16.7% of Hennessy Capital Acquisition shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Ferrari pays an annual dividend of $0.68 per share and has a dividend yield of 0.6%. Hennessy Capital Acquisition does not pay a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hennessy Capital Acquisition and Ferrari, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hennessy Capital Acquisition 0 0 2 0 3.00
Ferrari 1 4 4 0 2.33

Hennessy Capital Acquisition currently has a consensus price target of $22.00, suggesting a potential upside of 13.99%. Ferrari has a consensus price target of $113.20, suggesting a potential downside of 6.42%. Given Hennessy Capital Acquisition’s stronger consensus rating and higher possible upside, analysts plainly believe Hennessy Capital Acquisition is more favorable than Ferrari.

Valuation and Earnings

This table compares Hennessy Capital Acquisition and Ferrari’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hennessy Capital Acquisition $990.60 million 0.47 $28.80 million $0.61 31.64
Ferrari $3.44 billion 6.65 $441.27 million N/A N/A

Ferrari has higher revenue and earnings than Hennessy Capital Acquisition.

Profitability

This table compares Hennessy Capital Acquisition and Ferrari’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hennessy Capital Acquisition 2.91% -24.21% 9.52%
Ferrari 15.06% 106.38% 13.30%

Summary

Ferrari beats Hennessy Capital Acquisition on 9 of the 13 factors compared between the two stocks.

Hennessy Capital Acquisition Company Profile

Blue Bird Corporation designs, engineers, manufactures, and sells school buses and aftermarket parts in the United States, Canada, and internationally. It offers Type C, Type D, and specialty buses, as well as Sigma, a bus for public transportation. The company sells its products through a network of dealers, as well as directly to fleet operators, the United States government, and state governments. It also distributes aftermarket parts of various makes. The company was founded in 1927 and is headquartered in Fort Valley, Georgia.

Ferrari Company Profile

Ferrari NV, known as New Business Netherlands NV, is an Italy-based company, incorporated in the Netherlands, that is engaged in designing, manufacturing and selling sports cars under the Ferrari brand. Its products include nine sports car models, including seven sports cars: 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A; as well as two grand tourer (GT) cars: California T and FF. In addition, the Company produces a limited edition supercar, LaFerrari, and limited series and one-off cars. It licenses its Ferrari brand to various produces and retailers of goods. 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). The Company is active in over 60 markets worldwide through a network of 182 authorized dealers operating 204 points of sale. The Company operates as a subsidiary of Fiat Chrysler Automobiles NV.

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