WallStSmart

Carvana Co (CVNA)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 335% more annual revenue ($97.88B vs $22.52B). CVNA leads profitability with a 6.4% profit margin vs 4.0%. CVNA trades at a lower P/E of 44.2x. CVNA earns a higher WallStSmart Score of 56/100 (C).

CVNA

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 3.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.18

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

CVNASignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$253.78

Current Price

$400.02

$146.24 premium

UndervaluedFair: $253.78Overvalued
TSLASignificantly Overvalued (-57.7%)

Margin of Safety

-57.7%

Fair Value

$261.17

Current Price

$411.79

$150.62 premium

UndervaluedFair: $261.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVNA4 strengths · Avg: 9.5/10
Return on EquityProfitability
60.2%10/10

Every $100 of equity generates 60 in profit

Revenue GrowthGrowth
52.0%10/10

Revenue surging 52.0% year-over-year

Market CapQuality
$84.54B9/10

Large-cap with strong market position

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

TSLA4 strengths · Avg: 8.8/10
Market CapQuality
$1.47T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.109/10

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

CVNA3 concerns · Avg: 3.0/10
Price/BookValuation
15.4x4/10

Trading at 15.4x book value

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

P/E RatioValuation
44.2x2/10

Premium valuation, high expectations priced in

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
18.8x4/10

Trading at 18.8x book value

Return on EquityProfitability
4.9%3/10

ROE of 4.9% — 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 : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% demonstrates continued momentum.

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 : CVNA

The primary concerns for CVNA are Price/Book, Profit Margin, P/E Ratio. A P/E of 44.2x leaves little room for execution misses.

Bear Case : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 358.6x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

CVNA profiles as a hypergrowth stock while TSLA is a growth play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.55 — expect wider price swings.

CVNA is growing revenue faster at 52.0% — sustainability is the question.

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

Bottom Line

CVNA scores higher overall (56/100 vs 33/100) and 52.0% revenue growth. 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.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?