Head to Head Review: Tesla (NASDAQ:TSLA) & Mercedes-Benz Group (OTCMKTS:MBGYY)

Mercedes-Benz Group (OTCMKTS:MBGYY) and Tesla (NASDAQ:TSLA) are both large-cap auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Earnings & Valuation

This table compares Mercedes-Benz Group and Tesla”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$157.56 billion	0.34	$15.43 billion	C$2.76	5.03
Tesla	$97.69 billion	8.30	$7.13 billion	$2.04	123.51

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

Insider & Institutional Ownership

66.2% of Tesla shares are owned by institutional investors. 20.7% of Tesla shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Mercedes-Benz Group has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Tesla has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500.

Profitability

This table compares Mercedes-Benz Group and Tesla’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	6.99%	10.90%	3.84%
Tesla	7.26%	10.31%	6.15%

Analyst Ratings

This is a summary of recent ratings and target prices for Mercedes-Benz Group and Tesla, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	0	5	0	0	2.00
Tesla	7	9	21	1	2.42

Tesla has a consensus price target of $298.59, indicating a potential upside of 18.51%. Given Tesla’s stronger consensus rating and higher possible upside, analysts plainly believe Tesla is more favorable than Mercedes-Benz Group.

Summary

Tesla beats Mercedes-Benz Group on 11 of the 15 factors compared between the two stocks.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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.