Tesla (TSLA) and Its Competitors Head to Head Comparison

Tesla (NASDAQ:TSLA) is one of 119 public companies in the “Automobiles” industry, but how does it contrast to its peers? We will compare Tesla to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares Tesla and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tesla	3.11%	3.03%	1.78%
Tesla Competitors	-1,480.28%	-126.41%	-12.05%

Valuation and Earnings

This table compares Tesla and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tesla	$103.57 billion	$3.79 billion	429.96
Tesla Competitors	$830.43 billion	$1.13 billion	7.84

Tesla’s peers have higher revenue, but lower earnings than Tesla. Tesla is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Tesla has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Tesla’s peers have a beta of 1.02, indicating that their average stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tesla and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tesla	4	17	26	1	2.50
Tesla Competitors	2142	5148	6400	192	2.33

Tesla presently has a consensus price target of $414.51, indicating a potential upside of 5.94%. As a group, “Automobiles” companies have a potential upside of 90.77%. Given Tesla’s peers higher possible upside, analysts clearly believe Tesla has less favorable growth aspects than its peers.

Institutional & Insider Ownership

66.2% of Tesla shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are owned by institutional investors. 20.0% of Tesla shares are owned by company insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Tesla beats its peers on 11 of the 13 factors compared.

Tesla Company Profile

Tesla, Inc. designs, develops, manufactures and sells electric vehicles and energy products. Its vehicle lineup includes the Model S, Model 3, Model X, Model Y and Cybertruck, along with related software and services. The company also provides energy generation and storage products, including solar systems, Powerwall home batteries and Megapack utility-scale storage. Its services include vehicle maintenance, charging through the Supercharger network and software features for its vehicles. Founded in 2003 and headquartered in Austin, Texas, Tesla serves customers in markets around the world.