Ferrari NV (RACE)vsYum China Holdings Inc (YUMC)
RACE
Ferrari NV
$317.40
-1.91%
CONSUMER CYCLICAL · Cap: $56.52B
YUMC
Yum China Holdings Inc
$49.59
-0.76%
CONSUMER CYCLICAL · Cap: $17.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum China Holdings Inc generates 65% more annual revenue ($11.80B vs $7.15B). RACE leads profitability with a 22.4% profit margin vs 7.9%. YUMC appears more attractively valued with a PEG of 1.27. YUMC earns a higher WallStSmart Score of 64/100 (C+).
RACE
Buy51
out of 100
Grade: C-
YUMC
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-444.1%
Fair Value
$70.38
Current Price
$317.40
$247.02 premium
Margin of Safety
+52.2%
Fair Value
$117.47
Current Price
$49.59
$67.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Generating 1.4B in free cash flow
Earnings expanding 34.3% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.5x book value
3.8% revenue growth
Expensive relative to growth rate
7.9% margin — thin
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : YUMC
The strongest argument for YUMC centers on EPS Growth. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.
Bear Case : YUMC
The primary concerns for YUMC are Profit Margin, Free Cash Flow.
Key Dynamics to Monitor
RACE carries more volatility with a beta of 0.55 — expect wider price swings.
YUMC is growing revenue faster at 8.8% — sustainability is the question.
RACE generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor AUTO MANUFACTURERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
YUMC scores higher overall (64/100 vs 51/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Yum China Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.
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