MotorCycle vs Tesla Which Is More Lucrative?

Investors interested in the automotive sector often find themselves debating between two major players: traditional motorcycle companies and innovative electric vehicle manufacturer Tesla. Motorcycle stocks cater to enthusiasts of the classic two-wheeled transport, while Tesla's stocks represent the future of sustainable transportation. Both industries offer unique opportunities and risks for investors seeking to capitalize on the evolution of the automotive industry. Understanding the differences between these sectors is crucial for making informed investment decisions.

MotorCycle or Tesla?

When comparing MotorCycle 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 MotorCycle 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. MotorCycle has a dividend yield of 6.08%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MotorCycle reports a 5-year dividend growth of 7.40% year and a payout ratio of 78.35%. 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 MotorCycle P/E ratio at 8.59 and Tesla's P/E ratio at 88.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MotorCycle P/B ratio is 0.61 while Tesla's P/B ratio is 16.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MotorCycle has seen a 5-year revenue growth of 0.51%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MotorCycle's ROE at 7.15% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$1.56 for MotorCycle and $336.00 for Tesla. Over the past year, MotorCycle's prices ranged from A$0.98 to A$2.51, with a yearly change of 156.12%. Tesla's prices fluctuated between $138.80 and $358.64, with a yearly change of 158.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.