Sony vs Tesla Which Is More Favorable?

Sony Corporation and Tesla Inc. are two prominent players in the technology and automotive industries, respectively. Both companies have experienced significant growth and success in recent years, but their stocks have taken different paths. Sony's stock has been performing steadily, while Tesla's stock has been on a rollercoaster ride fueled by high volatility and speculation. Investors are closely monitoring the performance of both stocks to gauge the overall health and future potential of these innovative companies.

Sony or Tesla?

When comparing Sony 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 Sony 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. Sony has a dividend yield of 0.56%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sony reports a 5-year dividend growth of 43.63% year and a payout ratio of 9.28%. 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 Sony P/E ratio at 18.03 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. Sony P/B ratio is 2.63 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, Sony has seen a 5-year revenue growth of 0.38%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sony's ROE at 14.75% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.62 for Sony and $415.71 for Tesla. Over the past year, Sony's prices ranged from $15.02 to $22.71, with a yearly change of 51.18%. 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.