Mercedes-Benz vs Tesla Which Performs Better?

Mercedes-Benz and Tesla are two of the most prominent automakers in the world, each known for their cutting-edge technology and luxury vehicles. When it comes to their respective stock performances, both companies have seen significant growth and fluctuations. Mercedes-Benz, a traditional automotive giant with a long history of success, has been steadily increasing in value. On the other hand, Tesla, a relatively newer player in the industry, has experienced exponential growth and high volatility in its stock price. Investors often compare these two automotive giants to determine which one offers the best potential for returns.

Mercedes-Benz or Tesla?

When comparing Mercedes-Benz 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 Mercedes-Benz 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. Mercedes-Benz has a dividend yield of 9.24%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mercedes-Benz reports a 5-year dividend growth of 5.20% year and a payout ratio of 50.61%. 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 Mercedes-Benz P/E ratio at 5.42 and Tesla's P/E ratio at 105.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mercedes-Benz P/B ratio is 0.65 while Tesla's P/B ratio is 19.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mercedes-Benz has seen a 5-year revenue growth of -0.08%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mercedes-Benz's ROE at 11.79% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.50 for Mercedes-Benz and $415.00 for Tesla. Over the past year, Mercedes-Benz's prices ranged from $53.78 to $83.50, with a yearly change of 55.26%. Tesla's prices fluctuated between $138.80 and $429.27, with a yearly change of 209.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.