WallStSmart

Carvana Co (CVNA)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 367% more annual revenue ($94.83B vs $20.32B). CVNA leads profitability with a 6.9% profit margin vs 4.0%. CVNA trades at a lower P/E of 33.3x. CVNA earns a higher WallStSmart Score of 60/100 (C+).

CVNA

Buy

60

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 7.0Quality: 8.5
Piotroski: 4/9Altman Z: 2.18

TSLA

Avoid

23

out of 100

Grade: F

Growth: 3.3Profit: 4.0Value: 2.0Quality: 7.5
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVNAUndervalued (+7.8%)

Margin of Safety

+7.8%

Fair Value

$394.99

Current Price

$281.28

$113.71 discount

UndervaluedFair: $394.99Overvalued
TSLASignificantly Overvalued (-4954.4%)

Margin of Safety

-4954.4%

Fair Value

$7.28

Current Price

$367.96

$360.68 premium

UndervaluedFair: $7.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVNA5 strengths · Avg: 9.6/10
Return on EquityProfitability
67.9%10/10

Every $100 of equity generates 68 in profit

Revenue GrowthGrowth
58.0%10/10

Revenue surging 58.0% year-over-year

EPS GrowthGrowth
947.0%10/10

Earnings expanding 947.0% YoY

Market CapQuality
$61.64B9/10

Large-cap with strong market position

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

TSLA3 strengths · Avg: 9.0/10
Market CapQuality
$1.38T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.42B8/10

Generating 1.4B in free cash flow

Areas to Watch

CVNA3 concerns · Avg: 3.7/10
P/E RatioValuation
33.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
16.8x4/10

Trading at 16.8x 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
4.7%3/10

Operating margin of 4.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 58.0% demonstrates continued momentum.

Bull Case : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Free Cash Flow.

Bear Case : CVNA

The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.

Bear Case : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 343.9x 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 value play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.67 — expect wider price swings.

CVNA is growing revenue faster at 58.0% — sustainability is the question.

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

Bottom Line

CVNA scores higher overall (60/100 vs 23/100) and 58.0% 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.

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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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