Tesla (NASDAQ:TSLA – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
66.2% of Tesla shares are owned by institutional investors. Comparatively, 25.8% of Vroom shares are owned by institutional investors. 19.9% of Tesla shares are owned by company insiders. Comparatively, 2.9% of Vroom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Tesla and Vroom”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tesla | $94.83 billion | 16.87 | $3.79 billion | $1.09 | 390.83 |
| Vroom | $178.83 million | 0.35 | -$7.96 million | ($12.76) | -0.95 |
Tesla has higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Tesla and Vroom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tesla | 5 | 17 | 19 | 0 | 2.34 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
Tesla presently has a consensus target price of $395.20, indicating a potential downside of 7.23%. Given Tesla’s stronger consensus rating and higher possible upside, research analysts plainly believe Tesla is more favorable than Vroom.
Profitability
This table compares Tesla and Vroom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tesla | 3.95% | 4.89% | 2.93% |
| Vroom | -37.16% | -51.07% | -6.63% |
Risk & Volatility
Tesla has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Vroom has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Summary
Tesla beats Vroom on 14 of the 14 factors compared between the two stocks.
About Tesla
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
Receive News & Ratings for Tesla Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tesla and related companies with MarketBeat.com's FREE daily email newsletter.
