Ferrari vs Tesla Which Is Superior?

Ferrari and Tesla are two heavily talked about companies in the automotive industry with very different approaches. Ferrari represents luxury and exclusivity, appealing to high-end consumers and enthusiasts, while Tesla represents innovation and sustainability, capturing the attention of environmentally conscious investors. Both companies have seen significant changes in their stock values over the years, with Ferrari maintaining a steady performance and Tesla experiencing more volatile fluctuations. Understanding the differences in their business models and market dynamics is essential for investors looking to capitalize on their stocks.

Ferrari or Tesla?

When comparing Ferrari 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 Ferrari 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. Ferrari has a dividend yield of 0.54%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 1.80%. 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 Ferrari P/E ratio at 54.18 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. Ferrari P/B ratio is 23.24 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, Ferrari has seen a 5-year revenue growth of 0.81%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ferrari's ROE at 44.82% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $450.76 for Ferrari and $415.71 for Tesla. Over the past year, Ferrari's prices ranged from $330.15 to $498.23, with a yearly change of 50.91%. 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.