Tesla (NASDAQ:TSLA – Get Free Report) and Polaris (NYSE:PII – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Profitability
This table compares Tesla and Polaris’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tesla | 6.54% | 7.98% | 4.79% |
| Polaris | -1.57% | 5.16% | 1.19% |
Earnings & Valuation
This table compares Tesla and Polaris”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tesla | $97.69 billion | 10.90 | $7.13 billion | $1.73 | 190.77 |
| Polaris | $7.18 billion | 0.43 | $110.80 million | ($1.88) | -29.47 |
Tesla has higher revenue and earnings than Polaris. Polaris is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Tesla has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, Polaris has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Insider & Institutional Ownership
66.2% of Tesla shares are held by institutional investors. Comparatively, 88.1% of Polaris shares are held by institutional investors. 20.7% of Tesla shares are held by insiders. Comparatively, 3.1% of Polaris shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Tesla and Polaris, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tesla | 9 | 15 | 17 | 1 | 2.24 |
| Polaris | 1 | 12 | 1 | 0 | 2.00 |
Tesla currently has a consensus price target of $303.31, suggesting a potential downside of 8.10%. Polaris has a consensus price target of $48.33, suggesting a potential downside of 12.77%. Given Tesla’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Tesla is more favorable than Polaris.
Summary
Tesla beats Polaris on 14 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 Polaris
Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.
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