Comparing Ford Motor (F) and Tesla (TSLA)

Ford Motor (NYSE: F) and Tesla (NASDAQ:TSLA) are both large-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Ford Motor and Tesla, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ford Motor 1 13 6 0 2.25
Tesla 11 10 10 0 1.97

Ford Motor currently has a consensus target price of $12.69, indicating a potential upside of 6.14%. Tesla has a consensus target price of $297.50, indicating a potential downside of 15.76%. Given Ford Motor’s stronger consensus rating and higher probable upside, analysts plainly believe Ford Motor is more favorable than Tesla.

Earnings and Valuation

This table compares Ford Motor and Tesla’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ford Motor $156.78 billion 0.30 $7.60 billion $1.78 6.65
Tesla $11.76 billion 5.07 -$1.96 billion ($11.48) -30.56

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

Volatility and Risk

Ford Motor has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Tesla has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Ford Motor and Tesla’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ford Motor 4.86% 21.31% 2.85%
Tesla -18.77% -40.72% -8.34%

Institutional & Insider Ownership

55.3% of Ford Motor shares are owned by institutional investors. Comparatively, 60.7% of Tesla shares are owned by institutional investors. 1.0% of Ford Motor shares are owned by insiders. Comparatively, 22.8% of Tesla shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 5.1%. Tesla does not pay a dividend. Ford Motor pays out 33.7% of its earnings in the form of a dividend.

Summary

Ford Motor beats Tesla on 11 of the 16 factors compared between the two stocks.

About Ford Motor

Ford Motor Company designs, manufactures, markets, and services a range of Ford cars, trucks, sport utility vehicles, and electrified vehicles; and Lincoln luxury vehicles worldwide. Its Automotive segment sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to fleet customers, including commercial fleet customers, daily rental car companies, and governments. The company's Financial Services segment offers various automotive financing products to and through automotive dealers. Its financing products comprise retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. This segment also offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and improvement of dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was founded in 1903 and is based in Dearborn, Michigan.

About Tesla

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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