Passat vs Tesla Which Is More Profitable?

The automotive industry is rapidly evolving, with traditional manufacturers like Volkswagen facing off against electric car pioneer Tesla in the stock market. The Passat, a popular midsize sedan from Volkswagen, represents the old guard of combustion engine vehicles. On the other hand, Tesla's stock has skyrocketed in recent years, reflecting the growing demand for electric vehicles. Investors are now carefully weighing the potential of these two giants in the ever-changing automotive landscape.

Passat or Tesla?

When comparing Passat 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 Passat 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. Passat 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. Passat 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 Passat P/E ratio at 8.56 and Tesla's P/E ratio at 109.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Passat P/B ratio is 0.47 while Tesla's P/B ratio is 19.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Passat has seen a 5-year revenue growth of 0.88%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Passat's ROE at 5.59% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €4.68 for Passat and $415.71 for Tesla. Over the past year, Passat's prices ranged from €4.26 to €7.15, with a yearly change of 67.84%. Tesla's prices fluctuated between $138.80 and $436.30, with a yearly change of 214.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.