WallStSmart

General Motors Company (GM)vsFerrari NV (RACE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Motors Company generates 2484% more annual revenue ($184.62B vs $7.15B). RACE leads profitability with a 22.4% profit margin vs 1.4%. GM appears more attractively valued with a PEG of 3.61. RACE earns a higher WallStSmart Score of 48/100 (D+).

GM

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 5.3Quality: 4.3
Piotroski: 3/9Altman Z: 1.19

RACE

Hold

48

out of 100

Grade: D+

Growth: 4.7Profit: 9.0Value: 2.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GMUndervalued (+24.0%)

Margin of Safety

+24.0%

Fair Value

$105.04

Current Price

$75.77

$29.27 discount

UndervaluedFair: $105.04Overvalued
RACESignificantly Overvalued (-48.3%)

Margin of Safety

-48.3%

Fair Value

$258.27

Current Price

$341.26

$82.99 premium

UndervaluedFair: $258.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GM3 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Market CapQuality
$69.09B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.44B8/10

Generating 1.4B in free cash flow

RACE5 strengths · Avg: 8.8/10
Return on EquityProfitability
42.9%10/10

Every $100 of equity generates 43 in profit

Market CapQuality
$61.27B9/10

Large-cap with strong market position

Profit MarginProfitability
22.4%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$1.41B8/10

Generating 1.4B in free cash flow

Areas to Watch

GM4 concerns · Avg: 3.3/10
P/E RatioValuation
28.0x4/10

Moderate valuation

Return on EquityProfitability
4.0%3/10

ROE of 4.0% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

RACE4 concerns · Avg: 3.5/10
P/E RatioValuation
33.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.4x4/10

Trading at 13.4x book value

Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

PEG RatioValuation
3.822/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GM

The strongest argument for GM centers on Price/Book, Market Cap, Free Cash Flow.

Bull Case : RACE

The strongest argument for RACE centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.4% and operating margin at 28.6%.

Bear Case : GM

The primary concerns for GM are P/E Ratio, Return on Equity, Profit Margin. Thin 1.4% margins leave little buffer for downturns.

Bear Case : RACE

The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

GM carries more volatility with a beta of 1.34 — expect wider price swings.

RACE is growing revenue faster at 3.8% — sustainability is the question.

GM generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor AUTO MANUFACTURERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RACE scores higher overall (48/100 vs 44/100), backed by strong 22.4% margins. GM offers better value entry with a 24.0% margin of safety. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

General Motors Company

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

General Motors Company (GM) is an American multinational corporation headquartered in Detroit, Michigan that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services, with global headquarters in Detroit's Renaissance Center.

Ferrari NV

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.

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