Aptiv vs Tesla Which Is a Smarter Choice?

Aptiv and Tesla are two leading companies in the automotive industry that both specialize in electric vehicles and autonomous driving technology. While Tesla is known for its innovative and futuristic approach to transportation, Aptiv focuses on creating advanced safety systems and software for self-driving cars. Both companies have experienced significant growth in their stock prices in recent years, attracting the attention of investors looking to capitalize on the rapidly evolving market for electric and autonomous vehicles.

Aptiv or Tesla?

When comparing Aptiv 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 Aptiv 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. Aptiv has a dividend yield of -%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aptiv reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.24%. 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 Aptiv P/E ratio at 5.87 and Tesla's P/E ratio at 109.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aptiv P/B ratio is 1.60 while Tesla's P/B ratio is 19.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aptiv has seen a 5-year revenue growth of 0.33%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aptiv's ROE at 22.54% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.26 for Aptiv and $415.71 for Tesla. Over the past year, Aptiv's prices ranged from $51.47 to $91.66, with a yearly change of 78.08%. Tesla's prices fluctuated between $138.80 and $436.30, with a yearly change of 214.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.