Hyundai vs Tesla Which Should You Buy?

Hyundai and Tesla are two leading players in the electric vehicle industry, each with unique strengths and growth potential. Hyundai, a traditional automaker, has made significant investments in electric vehicle technology and infrastructure. On the other hand, Tesla, a disruptor in the industry, has revolutionized the market with its innovative products and bold vision. Both companies have seen their stocks soar in recent years, but investors are closely watching to see which company will dominate the burgeoning electric vehicle market in the long run.

Hyundai or Tesla?

When comparing Hyundai 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 Hyundai 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. Hyundai has a dividend yield of 3.09%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hyundai reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.26%. 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 Hyundai P/E ratio at 2.21 and Tesla's P/E ratio at 106.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hyundai P/B ratio is 0.37 while Tesla's P/B ratio is 19.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hyundai has seen a 5-year revenue growth of 0.47%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hyundai's ROE at 18.01% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩19220.00 for Hyundai and $402.38 for Tesla. Over the past year, Hyundai's prices ranged from ₩16130.00 to ₩24500.00, with a yearly change of 51.89%. Tesla's prices fluctuated between $138.80 and $424.88, with a yearly change of 206.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.