Tesla vs Renault Which Is More Attractive?

Tesla and Renault are two prominent players in the electric vehicle industry, each with its own unique offerings and market strategy. Tesla, led by visionary entrepreneur Elon Musk, has captivated investors with its innovative technology and rapid growth. On the other hand, Renault, a traditional automaker, has been gradually transitioning towards electric vehicles to stay competitive in the market. Investors are closely watching the performance of both companies' stocks to gauge their strength in an increasingly electrified automotive industry.

Tesla or Renault?

When comparing Tesla and Renault, 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 Renault.

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 Renault has a dividend yield of 4.46%. 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, Renault reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.16%.

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 Renault's P/E ratio at 1.69. 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 Renault's P/B ratio is 0.08.

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 Renault's is 3.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tesla's ROE at 19.29% and Renault's ROE at 4.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $415.71 for Tesla and $9.23 for Renault. Over the past year, Tesla's prices ranged from $138.80 to $436.30, with a yearly change of 214.34%. Renault's prices fluctuated between $7.25 and $11.72, with a yearly change of 61.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.