Tesla (NASDAQ:TSLA) and Electrameccanica Vehicles (NASDAQ:SOLO) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.
Valuation & Earnings
This table compares Tesla and Electrameccanica Vehicles' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Tesla | $24.58 billion | 23.35 | $-862,000,000.00 | ($0.98) | -610.15 |
Electrameccanica Vehicles | $580,000.00 | 711.49 | $-23,170,000.00 | ($0.64) | -7.89 |
Electrameccanica Vehicles has lower revenue, but higher earnings than Tesla. Tesla is trading at a lower price-to-earnings ratio than Electrameccanica Vehicles, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
41.4% of Tesla shares are held by institutional investors. Comparatively, 5.3% of Electrameccanica Vehicles shares are held by institutional investors. 23.0% of Tesla shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Tesla and Electrameccanica Vehicles' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Tesla | 1.97% | 4.93% | 1.43% |
Electrameccanica Vehicles | -4,809.43% | -61.89% | -50.36% |
Risk and Volatility
Tesla has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500. Comparatively, Electrameccanica Vehicles has a beta of 3.08, suggesting that its share price is 208% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Tesla and Electrameccanica Vehicles, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Tesla | 12 | 14 | 6 | 0 | 1.81 |
Electrameccanica Vehicles | 0 | 1 | 4 | 0 | 2.80 |
Tesla currently has a consensus price target of $324.9241, suggesting a potential downside of 45.66%. Electrameccanica Vehicles has a consensus price target of $8.4167, suggesting a potential upside of 66.67%. Given Electrameccanica Vehicles' stronger consensus rating and higher probable upside, analysts plainly believe Electrameccanica Vehicles is more favorable than Tesla.
Summary
Tesla beats Electrameccanica Vehicles on 8 of the 14 factors compared between the two stocks.