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Apple vs Tesla stocks

We compare the price performance, dividends and business models behind two of the biggest companies on Wall Street.

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Tesla (NasdaqGS: TSLA) and Apple (NasdaqGS: AAPL) appear on the outside to be relatively different companies, but they have more in common that you might think.

Aside from each revolutionizing their respective industries, the 2 stocks have the distinction of being among the 10 biggest listed companies in the US by market cap.

In 2020, Apple overtook Microsoft to become the largest company on Wall Street with a market cap of USD $2.2 trillion. Tesla has also seen immense stock market success in recent years, surging by over 1,000% in the last 5 years and admitted to the prestigious S&P 500 stock index in late 2020.

Apple vs Tesla compared

If you’re thinking about investing in either Tesla or Apple, check out the table below to compare performance history, business models and key financial data specifically chosen to help you decide which stock is a buy. Note: These charts don’t yet take into account stock splits, but we’re working on it!

Apple technical analysis and stock price*


Technical Analysis for AAPL by TradingView

AAPL stock price

Tesla technical analysis and stock price*


Technical Analysis for TSLA by TradingView

TSLA stock price

*This is not a recommendation. It represents a technical analysis based on popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Company description and financial information

Apple

Apple logo

Tesla

Tesla logo

Business modelApple Inc. is an American-global technology company that designs and sells consumer electronics and software. Apple’s strategy is to bring users into its software and hardware eco system and keep them there. It designs and develops computer electronics such as laptops, desktop systems and mobile phones.Tesla is an American electric vehicle manufacturer based in California. Its products include electric cars, battery storage options and solar panels. Tesla’s goal is to build an affordable electric car with mass appeal along with zero emission power generation.
FoundedFounded in 1976 by Steve Jobs and Steve WozniakFounded in 2003 by Martin Eberhard and Marc Tarpenning
Market capUSD $2.08 trillionUSD $602.29 billion
12-month performance+86% (to 23 December 2020)+664% (to 23 December 2020)
1-month performance13% (to 23 December 2020)+30% (to 23 December 2020)
12-month revenueUSD $274.5 billionUSD $28.2 billion
Gross profitUSD $105 billion (annual)USD $4.1 billion (annual)
Price to earnings ratio (P/E)Apple has a P/E ratio of 40.3018.

As this is higher than the trailing 12-month P/E ratio of 27.29 for the NASDAQ 100 (at the end of 2019), it indicates the stock is overpriced or that investors are confident about the company’s outlook.

Tesla has a P/E ratio of 1,209.

As this is significantly higher than the trailing 12-month P/E ratio of 27.29 for the NASDAQ 100 (at the end of 2019), it indicates the stock is overpriced or that investors are extremely confident about the company’s future prospects.

Debt-to-equity ratio1.870.95
DividendsApple last paid $0.205 per share on November 20, 2020Tesla has never paid a dividend
Ethical rank (the low the better)Apple has an S&P Global ESG Score of 29/100, indicating fairly high ethical practicesTesla has an S&P Global ESG Score of 17/100, indicating high ethical practices
Risk levelApple has a beta of 1.2976 (as of December 23, 2020) which suggests Apple shares are more volatile than the average stock listed on NASDAQ, where the standard beta is 1.Tesla has a beta of 2.152 (as of December 23, 2020) which suggests Tesla shares are at least twice as volatile as the the average stock listed on NASDAQ, where the standard beta is 1.
Strengths
  • Market leader in consumer computer electrics and cloud technology
  • Global brand awareness
  • Innovative and cutting edge technology
  • Pays a dividend and has been profitable for many years
  • Globally recognized company
  • Market leader in electronic vehicle design and production
  • Electric battery storage expected to become more important over time
  • Stock price up over 1300% in the last five years (to December 23, 2020)
Weaknesses
  • Apple stock is more volatile than the average technology company listed in the United States
  • It has received criticism over unethical labour and business practices, including anti-competitive behaviour.
  • It has a high price to earnings ratio, suggesting the stock could be expensive
  • Stock price volatility is significantly higher than the average stock
  • Elon Musk’s erratic behaviour has direct impact on the company’s stock price
  • Price to earnings ratio is far higher than the average automobile manufacturer on the US market suggesting Tesla stock is very expensive
  • It only reported annual profit for the first time in January 2020

Debt to equity ratio: Compares a company’s level of debt to its amount of shareholder equity. Generally speaking, the higher the ratio, the more leveraged a company is, although this ratio will differ broadly across sectors.

Price-earnings ratio: The relative value of a company’s stock price to its recent profit results, i.e. the price investors are paying for every dollar of profit the company makes. A high P/E ratio might indicate investors expect growth to occur in the future and are willing to pay more for it, or it can also indicate the stock is overpriced.

In summary

  • Apple and Tesla are among the biggest companies in the world by market capitalization and the sit within the top 10 list in the United States.
  • Both companies rely on innovation and consumer-centric technology that offers mass appeal.
  • In direct competition with Tesla, Apple recently announced it planned to release an electric vehicle boasting a new type of battery by 2024.
  • Both companies are led by world-famous entrepreneurs.
  • Apple and Tesla have both been successful in revolutionizing their industries.

How to buy shares in Tesla and Apple

To buy shares in a US-listed stock from Canada, you’ll need to be registered with a stock trading platforms that provides access to US exchanges.

The cheapest option is to sign up with an online share trading platform. If you’re new to the stock market, look for a broker with a low commission (brokerage fee) and low currency conversion (FX) fee. You can use the table below to compare brokers that offer stocks in Tesla and Apple.

Compare stock trading platforms

Name Product Finder Rating Stock Trading Fee Account Fee Available Asset Types Offer
FREE TRADES
Wealthsimple Trade
Finder Rating:
★★★★★
3.9 / 5
$0
$0
Stocks, ETFs
Get 2 free stocks when you deposit and trade $150.
Scotia iTRADE
Finder Rating:
★★★★★
3.8 / 5
$4.99 - $9.99
$0
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
Interactive Brokers
Finder Rating:
★★★★★
4.1 / 5
Min. $1.00, Max. 0.5%
$0
Stocks, Bonds, Options, ETFs, Currencies, Futures
OFFER
CIBC Investor's Edge
Finder Rating:
★★★★★
4 / 5
$4.95 - $6.95
$0 if conditions met, otherwise $100/year
Stocks, Bonds, Options, Mutual Funds, ETFs
Get up to $2,000 cash back. Conditions apply. Offer ends March 1, 2022.
Questrade
Finder Rating:
★★★★★
4.2 / 5
$4.95 - $9.95
$0
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
Get $50 in free trades when you fund your account with a minimum of $1,000.
Qtrade Direct Investing
Finder Rating:
★★★★★
4.1 / 5
$6.95 - $8.75
$0 if conditions met, otherwise $25/quarter
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
Get a $50 bonus when you open a new RRSP, TFSA or RESP and start pre-authorized contributions of $200+/month. Valid until March 1, 2022.
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Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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