Tesla Vs. Ford: Which Is More Attractive?

Nov. 28, 2022 11:00 AM ETFord Motor Company (F), TSLA198 Comments
Frederik Mueller profile picture
Frederik Mueller
1.42K Followers

Summary

  • In this comparative analysis on Tesla and Ford I will analyze which automobile manufacturer I currently consider to be the better buy.
  • At this moment in time, Tesla’s market capitalization is more than 10x higher than Ford’s.
  • Tesla has a higher EBIT Margin (16.66% as compared to Ford’s 7.05%) and shows significantly higher Revenue and EBIT Growth Rates.
  • However, in terms of Valuation, Tesla shows a P/E GAAP [TTM] of 58.86 while Ford’s is only 6.26.
  • I consider the risk of investing in Tesla as being significantly higher than investing in Ford, which I will discuss in this analysis.

Average Price Of Electric Vehicles Rises, As Supply Costs Continue To Increase

Justin Sullivan/Getty Images News

Investment Thesis

  • In this comparative analysis, I will show you that I currently consider Tesla (NASDAQ:TSLA) to be the more attractive investment when compared to Ford (NYSE:F).
  • At the companies' current stock prices, my DCF Model shows an
HQC Scorecard

Source: The Author

Tesla and Ford according to the HQC Scorecard

Source: The Author

This article was written by

Frederik Mueller profile picture
1.42K Followers
In my analyses, I aim to identify companies that have strong competitive advantages over their competitors (for example, a strong brand image, cost advantages, special know how, strong pricing power, a strong distribution network, etc.) in order to support you to find excellent long-term investments. I aspire to help you build an investment portfolio consisting of high-quality companies that are particularly attractive in terms of risk and reward (for example, due to their wide economic moat, high financial strength, high profitability, attractive valuation, growth potential and expected return). I was born in Germany and majored in Business Administration at the University of Mannheim (Germany) and San Diego State University (United States).

Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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