EQB vs Tesla Which Outperforms?

EQB and Tesla stocks are two popular investment options in the electric vehicle industry. While Tesla has long been a dominant player in the market, EQB has recently emerged as a strong contender. Both companies are known for their innovative technologies and commitment to sustainability, making them attractive choices for environmentally-conscious investors. However, there are key differences between the two stocks in terms of market performance, financial health, and growth potential. Understanding these differences is crucial for making informed investment decisions.

EQB or Tesla?

When comparing EQB 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 EQB 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. EQB has a dividend yield of 2.24%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EQB reports a 5-year dividend growth of 6.79% year and a payout ratio of 9.00%. 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 EQB P/E ratio at 10.05 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. EQB P/B ratio is 1.30 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, EQB has seen a 5-year revenue growth of 6.12%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EQB's ROE at 13.31% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are C$99.40 for EQB and $415.71 for Tesla. Over the past year, EQB's prices ranged from C$78.24 to C$113.20, with a yearly change of 44.68%. 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.