Tesla vs Walmart Which Outperforms?

Tesla and Walmart are two well-known companies that operate in very different industries - one in electric vehicles and renewable energy, and the other in retail and consumer goods. Despite their differences, both companies have seen significant growth and success in recent years. Tesla's stock has skyrocketed, thanks to innovative technology and a growing market for electric vehicles. Walmart, on the other hand, has maintained its position as a retail giant and continues to adapt to changing consumer trends. Investors are closely watching the performance of these two stocks to determine which one will come out on top in the long run.

Tesla or Walmart?

When comparing Tesla and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 0.88%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

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 Walmart's P/E ratio at 38.50. 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 Walmart's P/B ratio is 8.60.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tesla's ROE at 19.29% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $415.71 for Tesla and $93.04 for Walmart. Over the past year, Tesla's prices ranged from $138.80 to $436.30, with a yearly change of 214.34%. Walmart's prices fluctuated between $50.51 and $96.18, with a yearly change of 90.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.