Tesla vs Apple Which Is More Lucrative?

Tesla and Apple are two of the biggest companies in the tech sector, but they operate in very different industries - Tesla is a leader in electric vehicles and renewable energy, while Apple is known for its consumer electronics and software. Both stocks have seen significant growth in recent years, with Tesla experiencing a surge in market capitalization and Apple maintaining its position as one of the most valuable companies in the world. Investors are constantly comparing the performance of these two tech giants to determine which stock offers the best potential for long-term growth.

Tesla or Apple?

When comparing Tesla and Apple, 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 Tesla and Apple.

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. Tesla has a dividend yield of -%, while Apple has a dividend yield of 0.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tesla reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%.

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 Tesla P/E ratio at 109.81 and Apple's P/E ratio at 40.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tesla P/B ratio is 19.95 while Apple's P/B ratio is 66.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tesla has seen a 5-year revenue growth of 2.63%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tesla's ROE at 19.29% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $415.71 for Tesla and $246.24 for Apple. Over the past year, Tesla's prices ranged from $138.80 to $436.30, with a yearly change of 214.34%. Apple's prices fluctuated between $164.08 and $250.80, with a yearly change of 52.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.