Nasdaq vs Tesla

Nasdaq is a leading stock market index that represents the performance of technology and growth companies in the US. Tesla, on the other hand, is a renowned electric vehicle and clean energy company founded by Elon Musk. The stocks of Tesla have been closely watched and compared to the overall performance of the Nasdaq index due to the company's rapid growth and innovative products. Investors and analysts often use Tesla's stock performance as a barometer for the health of the tech sector within the Nasdaq index.

Nasdaq or Tesla?

When comparing Nasdaq 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 Nasdaq 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. Nasdaq has a dividend yield of 1.59%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nasdaq reports a 5-year dividend growth of -12.74% year and a payout ratio of 52.80%. 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 Nasdaq P/E ratio at 44.45 and Tesla's P/E ratio at 56.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nasdaq P/B ratio is 3.86 while Tesla's P/B ratio is 10.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nasdaq has seen a 5-year revenue growth of 0.39%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nasdaq's ROE at 9.72% and Tesla's ROE at 20.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $72.73 for Nasdaq and $217.12 for Tesla. Over the past year, Nasdaq's prices ranged from $47.56 to $74.88, with a yearly change of 57.44%. Tesla's prices fluctuated between $138.80 and $271.00, with a yearly change of 95.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.