Meta vs. Tesla: Who Wins This Clash of Titans in the Financial Arena?
Investing.com | Jun 27, 2023 11:49
- Elon Vs. Mark might or might not happen in reality
- But, a Meta vs. Tesla 'financial' cage fight is certainly possible
- Using InvestingPro, we compared Tesla and Meta over various financial metrics to determine a winner
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- Meta 1 - Tesla 0
- Meta 2 - Tesla 0
- Meta 2 - Tesla 1
- Meta 3 - Tesla 1
- Meta 3 - Tesla 2
- Meta 4 - Tesla 2
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Elon Musk and Mark Zuckerberg have been taking shots at each other on social media lately. The latest development in their rivalry came on June 21, when Musk challenged Zuckerberg to a cage fight. Zuckerberg responded by posting a screenshot of Musk's tweet with the caption, "Send me location."
While the likelihood of a cage fight actually happening is slim, the challenge has sparked renewed interest in the two companies' respective financial performance. Using InvestingPro , we compared key financial metrics and target prices of Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META) to determine which company is currently in a stronger position.
By the way, you can do that too, for any company of your choice. InvestingPro is currently hosting its , offering massive discounts on subscription plans.
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h2 Round 1: Fair Value/h2Based on InvestingPro 's mathematical models, Meta demonstrates a more significant discount compared to Tesla at the Fair Value level. Meta presents a potential upside of 13.9%, whereas Tesla lags behind with only 0.7%.
The social media giant appears to have the edge over the automaker in this metric.
Source: InvestingPro
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Source: InvestingPro
h2 Round 2: Profitability/h2When considering key profitability metrics from InvestingPro , specifically Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC), the average of these three metrics indicates Mark's triumph.
Meta achieves an average of 22.16%, while Tesla trails behind with an average of 16.23%.
Source: InvestingPro
Source: InvestingPro
h2 Round 3: Growth/h2In terms of annualized diluted earnings per share (CAGR) growth, Elon narrows the gap between him and Mark.
Over the past 10 years, Tesla has achieved a growth rate of 64%, surpassing Meta's 34%. Tesla emerges as the winner here.
h2 Round 4: FCF Yield/h2Meta Platforms has an FCF Yield of 2.7% versus 1% Tesla, based on end-2022 values.
h2 Round 5: Debt/h2When evaluating the debt-to-capital ratio, it becomes evident that Elon's company outperforms Mark's. While Meta Platforms showcases a commendable debt-to-capital ratio of 22.6%, it is noteworthy that Tesla boasts a more favorable ratio of 11.3%.
Source: InvestingPro
Source: InvestingPro
h2 Round 6: Technical Chart/h2Since the beginning of the year, Meta has rallied by 155%, outperforming Tesla, which surged 101%. Meta is the clear winner in the parabolic rally battle.
According to InvestingPro , Meta emerges as the victor in this hypothetical cage fight challenge, reflecting a better performance on various metrics.
And, it turns out Meta's CEO, Mark Zuckerberg, is a black belt in jiu-jitsu. This could give him a significant advantage in an actual cage fight against Tesla CEO Elon Musk, who recently claimed to have had received training in some forms of martial arts as a child, if an actual fight were to take place.
Of course, a cage fight is just hypothetical at this point.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counseling or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. As a reminder, any type of assets, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor. The author does not own the stocks mentioned in the analysis."
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