Head to Head Review: Tesla (TSLA) versus Kandi Technologies Group (KNDI)

Tesla (NASDAQ: TSLA) and Kandi Technologies Group (NASDAQ:KNDI) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Volatility and Risk

Tesla has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Kandi Technologies Group has a beta of 2.76, meaning that its stock price is 176% more volatile than the S&P 500.

Profitability

This table compares Tesla and Kandi Technologies Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tesla -16.68% -32.11% -7.21%
Kandi Technologies Group -55.20% -22.45% -11.27%

Valuation and Earnings

This table compares Tesla and Kandi Technologies Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tesla $11.76 billion 4.46 -$674.91 million ($11.79) -26.33
Kandi Technologies Group $129.49 million 1.84 -$6.51 million ($0.90) -5.50

Kandi Technologies Group has lower revenue, but higher earnings than Tesla. Tesla is trading at a lower price-to-earnings ratio than Kandi Technologies Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

57.4% of Tesla shares are held by institutional investors. Comparatively, 4.0% of Kandi Technologies Group shares are held by institutional investors. 23.1% of Tesla shares are held by insiders. Comparatively, 28.8% of Kandi Technologies Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Tesla and Kandi Technologies Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesla 10 10 11 0 2.03
Kandi Technologies Group 0 0 0 0 N/A

Tesla currently has a consensus target price of $326.69, suggesting a potential upside of 5.24%. Given Tesla’s higher probable upside, equities analysts plainly believe Tesla is more favorable than Kandi Technologies Group.

Summary

Tesla beats Kandi Technologies Group on 7 of the 13 factors compared between the two stocks.

Tesla Company Profile

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.

Kandi Technologies Group Company Profile

Kandi Technologies Group, Inc. (Kandi) is focused on the development of pure electric vehicle (EV) products and manufacturing electric vehicle’s parts. The Company’s business operations are the design, development, manufacturing and commercialization of electric vehicles, electric vehicle parts and off-road vehicles, which are distributed in China and global markets. Its products include EV parts, EV products and off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts and others. The Company conducts its business operations through its subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (Kandi Vehicles), and the partial subsidiaries of Kandi Vehicles. The Company focuses on fuel efficient, pure EV parts manufacturing. Its subsidiary, Jinhua Kandi New Energy Vehicles Co., Ltd., holds battery packing production rights, and supplies the battery pack to the joint venture company.

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