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.
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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!
*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
Tesla
Business model
Apple 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.
Founded
Founded in 1976 by Steve Jobs and Steve Wozniak
Founded in 2003 by Martin Eberhard and Marc Tarpenning
Market cap
USD $2.08 trillion
USD $602.29 billion
12-month performance
+86% (to 23 December 2020)
+664% (to 23 December 2020)
1-month performance
13% (to 23 December 2020)
+30% (to 23 December 2020)
12-month revenue
USD $274.5 billion
USD $28.2 billion
Gross profit
USD $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 ratio
1.87
0.95
Dividends
Apple last paid $0.205 per share on November 20, 2020
Tesla 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 practices
Tesla has an S&P Global ESG Score of 17/100, indicating high ethical practices
Risk level
Apple 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.
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.
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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. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Kylie Purcell is the senior investments editor at Finder. She has a background in business and finance news with previous roles at SBS, Your Money, TVNZ, Switzer Group and The Adviser magazine. Kylie has a Masters in International Journalism and a Graduate Diploma in Economics. When she's not writing about the markets you can find her bingeing on coffee.
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finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
