Tesla (NASDAQ:TSLA – Get Free Report) and Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) are both large-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Profitability
This table compares Tesla and Mercedes-Benz Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tesla | 7.26% | 10.31% | 6.15% |
| Mercedes-Benz Group | 6.99% | 10.90% | 3.84% |
Earnings and Valuation
This table compares Tesla and Mercedes-Benz Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tesla | $97.69 billion | 8.37 | $7.13 billion | $2.04 | 124.56 |
| Mercedes-Benz Group | $157.56 billion | 0.34 | $15.43 billion | C$2.76 | 5.10 |
Analyst Ratings
This is a summary of current ratings for Tesla and Mercedes-Benz Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tesla | 7 | 9 | 21 | 1 | 2.42 |
| Mercedes-Benz Group | 0 | 5 | 0 | 0 | 2.00 |
Tesla presently has a consensus target price of $298.59, suggesting a potential upside of 17.50%. Given Tesla’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Tesla is more favorable than Mercedes-Benz Group.
Risk & Volatility
Tesla has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
Institutional and Insider 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Tesla beats Mercedes-Benz Group on 11 of the 15 factors compared between the two stocks.
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.
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.
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