WallStSmart

Toyota Motor Corporation ADR (TM)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toyota Motor Corporation ADR generates 53103% more annual revenue ($50.45T vs $94.83B). TM leads profitability with a 7.3% profit margin vs 4.0%. TM appears more attractively valued with a PEG of 1.54. TM earns a higher WallStSmart Score of 53/100 (C-).

TM

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 5.0Value: 7.3Quality: 5.0

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

TMSignificantly Overvalued (-97.4%)

Margin of Safety

-97.4%

Fair Value

$120.90

Current Price

$209.11

$88.21 premium

UndervaluedFair: $120.90Overvalued
TSLASignificantly Overvalued (-5251.2%)

Margin of Safety

-5251.2%

Fair Value

$7.34

Current Price

$392.78

$385.44 premium

UndervaluedFair: $7.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TM2 strengths · Avg: 10.0/10
Market CapQuality
$277.91B10/10

Mega-cap, among the largest globally

P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

TSLA3 strengths · Avg: 9.0/10
Market CapQuality
$1.50T10/10

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

TM4 concerns · Avg: 3.3/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Price/BookValuation
11.2x4/10

Trading at 11.2x book value

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

EPS GrowthGrowth
-42.3%2/10

Earnings declined 42.3%

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

Trading at 17.9x 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 : TM

The strongest argument for TM centers on Market Cap, P/E Ratio.

Bull Case : TSLA

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

Bear Case : TM

The primary concerns for TM are PEG 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 369.7x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

TSLA carries more volatility with a beta of 1.93 — expect wider price swings.

TM is growing revenue faster at 8.6% — sustainability is the question.

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

Monitor AUTO MANUFACTURERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TM scores higher overall (53/100 vs 23/100). 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.

Toyota Motor Corporation ADR

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.

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?