The Motley Fool·2025-12-21 16:50Group 1: Ford Motor Company - Ford Motor Company has achieved a total return of 48% in 2025, significantly outperforming the S&P 500 [1] - Despite facing challenges such as tariffs, warranty costs, and a supplier factory fire, investor sentiment has improved, with the P/E ratio increasing from 6.8 to 11.5 [4] - The Ford Pro segment has shown strong performance, with double-digit revenue growth and an 11.4% operating margin in Q3 [5] - Ford's long-term growth prospects are considered weak, with low profits and significant capital expenditures [6] Group 2: Ferrari - Ferrari is highlighted as a superior investment opportunity compared to Ford, despite its stock being down 29% from its peak [8] - The company has a powerful brand that allows for pricing power and caters to a recession-resilient ultra-wealthy clientele [9] - Ferrari's revenue has grown at an annualized rate of 12% over the past three years, with an impressive trailing-12-month average operating margin of 29% [10] - Over the past decade, Ford shares generated a total return of 65%, while Ferrari's stock gained 726%, indicating Ferrari's stronger investment potential [11]