Volvo Car vs Tesla Which Is a Smarter Choice?

Volvo Car Group and Tesla Inc. are both major players in the automotive industry, each with its own unique strengths and market positioning. While Volvo has a long history of producing high-quality and safe vehicles, Tesla is known for innovating and leading the way in electric vehicles and autonomous driving technology. Investors may be interested in comparing the stocks of these two companies to determine which one offers the best potential for growth and returns in the increasingly competitive market for electric vehicles.

Volvo Car or Tesla?

When comparing Volvo Car and Tesla, 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 Volvo Car and Tesla.

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. Volvo Car has a dividend yield of 1.53%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Volvo Car reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Tesla reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Volvo Car P/E ratio at 11.97 and Tesla's P/E ratio at 100.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Volvo Car P/B ratio is 1.10 while Tesla's P/B ratio is 18.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Volvo Car has seen a 5-year revenue growth of -0.34%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Volvo Car's ROE at 9.62% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.44 for Volvo Car and $390.85 for Tesla. Over the past year, Volvo Car's prices ranged from $3.97 to $8.15, with a yearly change of 105.29%. Tesla's prices fluctuated between $138.80 and $409.72, with a yearly change of 195.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.