Ford vs. Ferrari: Investment Prospects
Ford Motor Company (NYSE: F) is drawing attention as a potential investment opportunity, with its shares priced at a forward price-to-earnings ratio of 9, and a dividend yield of 4.23%, notably higher than 10-year Treasuries’ 4.04%. However, despite a 33% share price increase in 2025, Ford posted a low operating margin of just 3% over the past five years and recorded a substantial $19.5 billion special charge related to its Model e electric vehicle division.
In contrast, Ferrari (NYSE: RACE) focuses on ultra-luxury markets, intentionally producing fewer cars than market demand to maintain exclusivity. The company’s shares have jumped 860% over the past decade, and it boasts an impressive operating margin of 29.5% from sales that increased at a compound annual rate of 9.6% from 2015 to 2025. Industry analysts expect Ferrari’s revenue to grow at 6.5% annually over the next three years, reinforcing its strong competitive position.
