Reviewing Tesla (TSLA) and Its Rivals

Tesla (NASDAQ: TSLA) is one of 30 publicly-traded companies in the “Motor vehicles & car bodies” industry, but how does it compare to its competitors? We will compare Tesla to related businesses based on the strength of its valuation, profitability, earnings, institutional ownership, analyst recommendations, dividends and risk.

Risk & Volatility

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Tesla has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Tesla’s competitors have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.

Insider and Institutional Ownership

58.2% of Tesla shares are held by institutional investors. Comparatively, 65.7% of shares of all “Motor vehicles & car bodies” companies are held by institutional investors. 23.1% of Tesla shares are held by insiders. Comparatively, 8.5% of shares of all “Motor vehicles & car bodies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Tesla -16.68% -33.08% -7.06%
Tesla Competitors -14.13% -0.28% -3.83%

Analyst Recommendations

This is a summary of recent ratings and price targets for Tesla and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesla 9 11 10 0 2.03
Tesla Competitors 441 1264 1627 110 2.41

Tesla presently has a consensus price target of $317.76, indicating a potential upside of 6.17%. As a group, “Motor vehicles & car bodies” companies have a potential upside of 11.02%. Given Tesla’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Tesla has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Tesla and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tesla $11.76 billion -$1.96 billion -26.07
Tesla Competitors $62.83 billion $2.64 billion 15.98

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

Summary

Tesla competitors beat Tesla on 11 of the 13 factors compared.

Tesla Company Profile

Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers sedans and sport utility vehicles. It also provides electric vehicle powertrain components and systems to other manufacturers; and services for electric vehicles through its company-owned service centers, Service Plus locations, and Tesla mobile technicians. This segment sells its products through a network of company-owned stores and galleries. The Energy Generation and Storage segment offers energy storage products, such as rechargeable lithium-ion battery systems for use in homes, commercial facilities, and utility grids; designs, manufactures, installs, maintains, leases, and sells solar energy systems to residential and commercial customers; and sell renewable energy to residential and commercial customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was founded in 2003 and is headquartered in Palo Alto, California.

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