Tesla vs Exxon Mobil Which Should You Buy?

Tesla and Exxon Mobil are two major players in the energy and technology sectors, each representing a different approach to the future of energy production and consumption. Tesla, the electric vehicle manufacturer led by Elon Musk, has rapidly gained popularity for its environmentally-friendly products and innovative technology. On the other hand, Exxon Mobil, one of the largest oil and gas companies in the world, has faced criticism for its impact on the environment and reliance on traditional fossil fuels. Investors are keenly watching the competition between these two companies, as they represent contrasting visions of the future of energy and transportation.

Tesla or Exxon Mobil?

When comparing Tesla and Exxon Mobil, 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 Exxon Mobil.

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 Exxon Mobil has a dividend yield of 3.46%. 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, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.99%.

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 Exxon Mobil's P/E ratio at 14.68. 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 Exxon Mobil's P/B ratio is 1.84.

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 Exxon Mobil's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tesla's ROE at 19.29% and Exxon Mobil's ROE at 14.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $415.71 for Tesla and $110.25 for Exxon Mobil. Over the past year, Tesla's prices ranged from $138.80 to $436.30, with a yearly change of 214.34%. Exxon Mobil's prices fluctuated between $95.77 and $126.34, with a yearly change of 31.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.