NVIDIA vs Tesla Which Is Stronger?

NVIDIA and Tesla are two prominent technology companies that have had a significant impact on the stock market in recent years. NVIDIA is known for its graphic processing units (GPUs) and AI technology, while Tesla is a leader in electric vehicles and renewable energy. Both companies have seen substantial growth in their stock prices, but there are key differences in their business models and market opportunities. Investors must carefully consider the strengths and weaknesses of each company before making investment decisions.

NVIDIA or Tesla?

When comparing NVIDIA 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 NVIDIA 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. NVIDIA has a dividend yield of 0.03%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%. 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 NVIDIA P/E ratio at 68.05 and Tesla's P/E ratio at 78.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 62.02 while Tesla's P/B ratio is 14.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 115.52% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $145.55 for NVIDIA and $310.37 for Tesla. Over the past year, NVIDIA's prices ranged from $45.01 to $149.77, with a yearly change of 232.75%. 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.