Tesla vs Nasdaq Which Outperforms?

Tesla Inc. (TSLA) and the Nasdaq stock index are two prominent players in the world of investing. Tesla, led by visionary CEO Elon Musk, is a leading electric vehicle (EV) manufacturer and energy company. The company's innovative products and ambitious goals have garnered significant attention and investment. The Nasdaq, on the other hand, is a stock exchange that lists many technology and growth companies, including Tesla. Both Tesla and the Nasdaq stocks offer unique opportunities and risks for investors looking to capitalize on the fast-paced world of technology and innovation.

Tesla or Nasdaq?

When comparing Tesla and Nasdaq, 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 Nasdaq.

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 Nasdaq has a dividend yield of 1.17%. 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, Nasdaq reports a 5-year dividend growth of -12.74% year and a payout ratio of 55.27%.

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 Nasdaq's P/E ratio at 48.05. 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 Nasdaq's P/B ratio is 4.16.

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 Nasdaq's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tesla's ROE at 19.29% and Nasdaq's ROE at 8.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $415.71 for Tesla and $79.95 for Nasdaq. Over the past year, Tesla's prices ranged from $138.80 to $436.30, with a yearly change of 214.34%. Nasdaq's prices fluctuated between $54.54 and $83.77, with a yearly change of 53.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.