Investors weighing Ferrari NV (RACE) against Dr Ing hc F Porsche AG Preferred (P911_p) confront a contrast between premium business quality and more compelling valuation. Market prices and forward multiples reflect that split: Porsche’s forward multiple is markedly lower than Ferrari’s, and fair-value models favor Porsche, while Ferrari’s operating metrics underscore a materially superior profit engine.
Valuation snapshot
The two companies sit at different points on the valuation spectrum. Porsche trades at €44.80 as of Sep 3, 5:35 PM CEST and shows a forward price-to-earnings multiple of 23.1x; its last twelve months (LTM) P/E was 47.8x. Ferrari was quoted at $417.48 as of Sep 3, 3:13 PM EDT and carries an LTM P/E of 42.1x and a forward P/E reported at 39.6x in the underlying data. Independent fair-value output cited for Porsche is $60.33, implying 15.9% upside as of Sep 3, 2026, while a comparable fair-value signal for Ferrari indicates 14.9% downside.
Profitability and returns - Ferrari’s strength
Ferrari’s financial profile demonstrates luxury economics at work. Its gross margin was 51.6% as of Jun 30, 2026, a level far above the comparable figure reported for Porsche. Ferrari’s return on equity was 45.4% as of Jun 30, 2026, reflecting very strong capital returns. Revenue growth for Ferrari measured 5.7% as of Jun 30, 2026. The company also paid a dividend yielding 1.0% as of Sep 3, 2026. Over the period cited, Ferrari’s revenue increased from $4.86 billion in 2021 to $8.39 billion in 2025, a jump linked to sustained pricing power and exclusivity in its market.
Valuation and leverage - Porsche’s case
Porsche’s investment case centers on valuation and balance sheet differences. The company’s forward P/E of 23.1x positions it as the cheaper option on an earnings basis versus Ferrari’s higher forward multiple. Porsche’s dividend yield was 2.3% as of Sep 3, 2026. On leverage, Porsche reported a debt-to-equity ratio of 51.1% as of Jun 30, 2026, compared with Ferrari’s reported 86.5% on the same date, indicating lower relative leverage for Porsche.
Operationally, Porsche has shown weaker recent top-line momentum: revenue declined 8.9% as of Jun 30, 2026. Total revenue for Porsche reached $42.61 billion in 2025, only modestly above $37.72 billion recorded in 2021. The lower profitability profile is visible in Porsche’s reported gross margin of 14.9% as cited in the underlying data.
The deciding trade-off
For investors focused on business quality, Ferrari is the clear winner: its margins, ROE, and revenue growth reflect what the underlying metrics describe as a standout luxury business. The trade-off is valuation risk - fair-value outputs indicate potential downside for Ferrari even as some analyst-target estimates point to upside.
For investors prioritizing valuation and margin of safety, Porsche offers the more attractive entry: a lower forward P/E, a higher dividend yield, lower leverage, and a fair-value upside case. That thesis depends on earnings stabilization and a recovery in product demand, since weak growth can erode the apparent value premium.
Bottom line
Porsche presents a cheaper recovery story if its earnings stabilize. Ferrari represents the higher-quality compounder but commands a demanding price. In summary: Porsche is the more attractive value play today; Ferrari is the superior-quality business at a premium valuation.