WallStSmart

Nio Inc Class A ADR (NIO)vsFerrari NV (RACE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Nio Inc Class A ADR generates 1452% more annual revenue ($114.11B vs $7.35B). RACE leads profitability with a 22.3% profit margin vs -4.2%. RACE earns a higher WallStSmart Score of 58/100 (C).

NIO

Avoid

34

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: -1.07

RACE

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 9.0Value: 2.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.44
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NIOUndervalued (+88.3%)

Margin of Safety

+88.3%

Fair Value

$43.39

Current Price

$3.69

$39.70 discount

UndervaluedFair: $43.39Overvalued
RACESignificantly Overvalued (-65.1%)

Margin of Safety

-65.1%

Fair Value

$250.64

Current Price

$413.78

$163.14 premium

UndervaluedFair: $250.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NIO1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
69.1%10/10

Revenue surging 69.1% year-over-year

RACE4 strengths · Avg: 9.5/10
Return on EquityProfitability
44.8%10/10

Every $100 of equity generates 45 in profit

Operating MarginProfitability
31.1%10/10

Strong operational efficiency at 31.1%

Market CapQuality
$71.78B9/10

Large-cap with strong market position

Profit MarginProfitability
22.3%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

NIO4 concerns · Avg: 3.0/10
Price/BookValuation
14.8x4/10

Trading at 14.8x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-207.8%2/10

ROE of -207.8% — below average capital efficiency

Altman Z-ScoreHealth
-1.072/10

Distress zone — elevated risk

RACE4 concerns · Avg: 3.0/10
P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.2x4/10

Trading at 17.2x book value

PEG RatioValuation
3.432/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.442/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : NIO

The strongest argument for NIO centers on Revenue Growth. Revenue growth of 69.1% demonstrates continued momentum.

Bull Case : RACE

The strongest argument for RACE centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 22.3% and operating margin at 31.1%.

Bear Case : NIO

The primary concerns for NIO are Price/Book, EPS Growth, Return on Equity. Debt-to-equity of 7.13 is elevated, increasing financial risk.

Bear Case : RACE

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

Key Dynamics to Monitor

NIO profiles as a hypergrowth stock while RACE is a mature play — different risk/reward profiles.

NIO carries more volatility with a beta of 0.92 — expect wider price swings.

NIO is growing revenue faster at 69.1% — sustainability is the question.

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

Bottom Line

RACE scores higher overall (58/100 vs 34/100), backed by strong 22.3% margins. NIO offers better value entry with a 88.3% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Nio Inc Class A ADR

CONSUMER CYCLICAL · AUTO MANUFACTURERS · China

NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in mainland China, Hong Kong, the United States, the United Kingdom, and Germany. The company is headquartered in Shanghai, China.

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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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