Apple vs Tesla

Apple and Tesla are two of the most innovative and influential companies in the world, each dominating their respective industries. While Apple is known for its groundbreaking technology and consumer products, Tesla has revolutionized the electric vehicle market. Both companies have seen their stocks soar in recent years, attracting investors seeking growth and stability. As the competition between these tech giants continues to heat up, investors are closely watching to see how their stock performances will fare in the coming years.

Apple or Tesla?

When comparing Apple and Tesla, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Apple and Tesla.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Apple has a dividend yield of 0.42%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%. On the other hand, Tesla reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Apple P/E ratio at 34.68 and Tesla's P/E ratio at 56.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 53.01 while Tesla's P/B ratio is 10.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and Tesla's ROE at 20.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $228.60 for Apple and $213.74 for Tesla. Over the past year, Apple's prices ranged from $164.08 to $237.23, with a yearly change of 44.58%. Tesla's prices fluctuated between $138.80 and $271.00, with a yearly change of 95.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.