Stellantis vs Tesla Which Outperforms?

Stellantis and Tesla are two major players in the automotive industry, each with their own strengths and weaknesses. Stellantis, formed through a merger between Fiat Chrysler Automobiles and PSA Group, is a traditional automaker with a wide range of well-known brands. On the other hand, Tesla is a pioneer in electric vehicles, known for its innovative technology and sustainable practices. Both companies have seen fluctuations in their stock prices, with investors closely monitoring their performances in the ever-evolving market.

Stellantis or Tesla?

When comparing Stellantis 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 Stellantis 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. Stellantis has a dividend yield of 11.88%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Stellantis reports a 5-year dividend growth of 0.00% year and a payout ratio of 34.98%. 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 Stellantis P/E ratio at 2.92 and Tesla's P/E ratio at 100.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Stellantis P/B ratio is 0.47 while Tesla's P/B ratio is 18.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Stellantis has seen a 5-year revenue growth of -0.12%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Stellantis's ROE at 16.27% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.77 for Stellantis and $390.85 for Tesla. Over the past year, Stellantis's prices ranged from $12.12 to $29.51, with a yearly change of 143.48%. Tesla's prices fluctuated between $138.80 and $409.72, with a yearly change of 195.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.