Nikola vs Tesla Which Is More Attractive?

Nikola Corporation and Tesla Inc. are two prominent players in the electric vehicle industry, with both companies garnering significant interest from investors. Nikola, known for its focus on hydrogen fuel cell technology, has been a hot topic in the market, while Tesla, with its innovative approach to battery-powered vehicles, has established itself as a leader in the EV space. The stocks of these companies have been closely watched by investors, as they represent the future of transportation and sustainable energy.

Nikola or Tesla?

When comparing Nikola 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 Nikola 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. Nikola has a dividend yield of -%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nikola reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Nikola P/E ratio at -0.26 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. Nikola P/B ratio is 0.44 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, Nikola has seen a 5-year revenue growth of 57.76%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nikola's ROE at -115.01% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.96 for Nikola and $336.00 for Tesla. Over the past year, Nikola's prices ranged from $2.91 to $34.80, with a yearly change of 1095.88%. 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.