Fiat Chrysler Automobiles N.V. (NYSE: FCAU) and Tesla (NASDAQ:TSLA) are both large-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

Fiat Chrysler Automobiles N.V. has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Tesla has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares Fiat Chrysler Automobiles N.V. and Tesla’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fiat Chrysler Automobiles N.V. 1.76% 14.39% 2.58%
Tesla -8.46% -17.13% -3.92%

Insider & Institutional Ownership

29.5% of Fiat Chrysler Automobiles N.V. shares are owned by institutional investors. Comparatively, 63.8% of Tesla shares are owned by institutional investors. 23.1% of Tesla shares are owned 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Fiat Chrysler Automobiles N.V. and Tesla, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiat Chrysler Automobiles N.V. 2 3 4 0 2.22
Tesla 7 9 13 0 2.21

Fiat Chrysler Automobiles N.V. currently has a consensus price target of $12.90, suggesting a potential upside of 19.00%. Tesla has a consensus price target of $287.75, suggesting a potential downside of 24.96%. Given Fiat Chrysler Automobiles N.V.’s stronger consensus rating and higher probable upside, equities analysts plainly believe Fiat Chrysler Automobiles N.V. is more favorable than Tesla.

Earnings and Valuation

This table compares Fiat Chrysler Automobiles N.V. and Tesla’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fiat Chrysler Automobiles N.V. $125.58 billion 0.13 $11.45 billion $1.38 7.86
Tesla $8.55 billion 7.37 $530.74 million ($4.77) -80.39

Fiat Chrysler Automobiles N.V. has higher revenue and earnings than Tesla. Tesla is trading at a lower price-to-earnings ratio than Fiat Chrysler Automobiles N.V., indicating that it is currently the more affordable of the two stocks.

Summary

Fiat Chrysler Automobiles N.V. beats Tesla on 9 of the 13 factors compared between the two stocks.

About Tesla

Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: Automotive, and Energy generation and storage. The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles. The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers. The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market. It develops energy storage products for use in homes, commercial facilities and utility sites.

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