WallStSmart

Best Buy Co. Inc (BBY)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 134% more annual revenue ($97.88B vs $41.86B). TSLA leads profitability with a 4.0% profit margin vs 2.7%. BBY appears more attractively valued with a PEG of 1.50. BBY earns a higher WallStSmart Score of 62/100 (C+).

BBY

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 5.3Quality: 6.0
Piotroski: 5/9Altman Z: 3.64

TSLA

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 4.0Value: 2.0Quality: 7.5
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BBYSignificantly Overvalued (-67.0%)

Margin of Safety

-67.0%

Fair Value

$40.17

Current Price

$71.54

$31.37 premium

UndervaluedFair: $40.17Overvalued
TSLASignificantly Overvalued (-52.0%)

Margin of Safety

-52.0%

Fair Value

$257.21

Current Price

$391.00

$133.79 premium

UndervaluedFair: $257.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BBY4 strengths · Avg: 9.0/10
Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
37.9%8/10

Earnings expanding 37.9% YoY

TSLA4 strengths · Avg: 8.8/10
Market CapQuality
$1.59T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.8%8/10

15.8% revenue growth

Free Cash FlowQuality
$1.44B8/10

Generating 1.4B in free cash flow

Areas to Watch

BBY4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.9%4/10

1.9% revenue growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.343/10

Elevated debt levels

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
17.9x4/10

Trading at 17.9x book value

Return on EquityProfitability
4.6%3/10

ROE of 4.6% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : BBY

The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio.

Bull Case : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 15.8% demonstrates continued momentum.

Bear Case : BBY

The primary concerns for BBY are Revenue Growth, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 385.2x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

BBY profiles as a value stock while TSLA is a growth play — different risk/reward profiles.

TSLA carries more volatility with a beta of 1.79 — expect wider price swings.

TSLA is growing revenue faster at 15.8% — sustainability is the question.

TSLA generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

BBY scores higher overall (62/100 vs 33/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Best Buy Co. Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.

Tesla Inc

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.

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