Two for Tuesday TSLA vs RACE
Two stocks I want to analyse today are TSLA and RACE.
RACE is Morgan Stanley's top pick, overtaking TSLA.
So let us delve deeper.
Looking at Revenue Growth (rate of business expansion) by comparing the most recent quarter to the same quarter last year, both have increased, but TSLA is in the lead.
Winner: TSLA
Operating Margin (efficiency and profitability indicator) shows that Ferrari is slightly in the lead here and has been for the last few years at least.
Winner: RACE
Free Cash Flow (cash generation) is a good insight into a company's ability to generate cash and make it available for distribution to debt holders, equity holders, preferred stockholders, dividends, acquisitions, developing new products, and more.
Winner: TSLA
Total Current Assets vs Long-Term Debt shows us the ability the company has to pay off its long-term debt within a year.
This is an important metric for us to look at when deciding to buy a long-term position.
This would be less useful for newer companies but, in this case, while TSLA is in a better position, neither company has issues dealing with their debt.
Winner: TSLA
Growth - using a 10k investment sample over 3 years, both stocks would have provided a good return but TSLA is very much in the lead here with growth of 313% compared to RACE which still managed a healthy 77%.
Winner: TSLA
Drawdown - often overlooked but generally, a stock with deep drawdowns might be more difficult to hold on to for some traders.
The less of a drawdown a stock experiences, the less likely we are to axe it due to experiencing pain and emotions.
Over the last 3 years, RACE would have been the easier to hold during the drawdown period.
Winner: RACE
Drawup - since their lowest closing price, both stocks have moved up and outperformed the market. TSLA on average about 1.88% /day during that time and RACE about 0.33% /day.
Winner: TSLA
Based on the above metrics, TSLA is the winner but RACE also seems a very good candidate and not lagging too far behind.
Let's go trade!
