APP vs. TSLA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and TSLA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TSLA’s market capitalization of 1,014.33 billion USD is significantly greater than APP’s 115.62 billion USD, highlighting its more substantial market valuation.
With betas of 2.53 for APP and 2.46 for TSLA, both stocks show similar sensitivity to overall market movements.
| Symbol | APP | TSLA |
|---|---|---|
| Company Name | AppLovin Corporation | Tesla, Inc. |
| Country | US | US |
| Sector | Technology | Consumer Cyclical |
| Industry | Software - Application | Auto - Manufacturers |
| CEO | Adam Arash Foroughi | Elon R. Musk |
| Price | 341.64 USD | 315.35 USD |
| Market Cap | 115.62 billion USD | 1,014.33 billion USD |
| Beta | 2.53 | 2.46 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | April 15, 2021 | June 29, 2010 |
| ADR | No | No |
Historical Performance
This chart compares the performance of APP and TSLA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
APP
224.68%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
TSLA
9.03%
Auto - Manufacturers Industry
- Max
- 103.41%
- Q3
- 44.32%
- Median
- 10.17%
- Q1
- -11.48%
- Min
- -70.38%
TSLA’s Return on Equity of 9.03% is on par with the norm for the Auto - Manufacturers industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
APP
48.77%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
TSLA
5.13%
Auto - Manufacturers Industry
- Max
- 35.94%
- Q3
- 4.50%
- Median
- -5.87%
- Q1
- -40.39%
- Min
- -107.35%
In the upper quartile for the Auto - Manufacturers industry, TSLA’s Return on Invested Capital of 5.13% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
APP
37.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
TSLA
6.70%
Auto - Manufacturers Industry
- Max
- 22.99%
- Q3
- 5.16%
- Median
- -1.71%
- Q1
- -78.77%
- Min
- -149.10%
A Net Profit Margin of 6.70% places TSLA in the upper quartile for the Auto - Manufacturers industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
APP
42.86%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TSLA
6.59%
Auto - Manufacturers Industry
- Max
- 29.04%
- Q3
- 6.33%
- Median
- -2.21%
- Q1
- -66.44%
- Min
- -106.75%
An Operating Profit Margin of 6.59% places TSLA in the upper quartile for the Auto - Manufacturers industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | APP | TSLA |
|---|---|---|
| Return on Equity (TTM) | 224.68% | 9.03% |
| Return on Assets (TTM) | 33.64% | 5.12% |
| Return on Invested Capital (TTM) | 48.77% | 5.13% |
| Net Profit Margin (TTM) | 37.39% | 6.70% |
| Operating Profit Margin (TTM) | 42.86% | 6.59% |
| Gross Profit Margin (TTM) | 77.40% | 17.66% |
Financial Strength
Current Ratio
APP
1.68
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
TSLA
2.00
Auto - Manufacturers Industry
- Max
- 3.32
- Q3
- 1.96
- Median
- 1.25
- Q1
- 0.90
- Min
- 0.38
TSLA’s Current Ratio of 2.00 is in the upper quartile for the Auto - Manufacturers industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
APP
6.45
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
TSLA
0.18
Auto - Manufacturers Industry
- Max
- 1.08
- Q3
- 0.96
- Median
- 0.80
- Q1
- 0.46
- Min
- 0.01
Falling into the lower quartile for the Auto - Manufacturers industry, TSLA’s Debt-to-Equity Ratio of 0.18 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
APP
7.41
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
TSLA
17.27
Auto - Manufacturers Industry
- Max
- 45.34
- Q3
- 22.10
- Median
- 2.42
- Q1
- -13.59
- Min
- -26.25
TSLA’s Interest Coverage Ratio of 17.27 is positioned comfortably within the norm for the Auto - Manufacturers industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | APP | TSLA |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 2.00 |
| Quick Ratio (TTM) | 1.68 | 1.54 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 0.18 |
| Debt-to-Asset Ratio (TTM) | 0.65 | 0.10 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.20 | -0.23 |
| Interest Coverage Ratio (TTM) | 7.41 | 17.27 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APP and TSLA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APP
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
TSLA
0.00%
Auto - Manufacturers Industry
- Max
- 7.57%
- Q3
- 0.92%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSLA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
APP
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
TSLA
0.00%
Auto - Manufacturers Industry
- Max
- 84.98%
- Q3
- 20.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSLA has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | APP | TSLA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
APP
60.47
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
TSLA
158.31
Auto - Manufacturers Industry
- Max
- 47.41
- Q3
- 24.64
- Median
- 8.54
- Q1
- 7.47
- Min
- 4.69
At 158.31, TSLA’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Auto - Manufacturers industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
APP
2.46
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
TSLA
3.77
Auto - Manufacturers Industry
- Max
- 3.87
- Q3
- 2.14
- Median
- 0.53
- Q1
- 0.13
- Min
- 0.03
The Forward PEG Ratio is often not a primary valuation metric in the Auto - Manufacturers industry.
Price-to-Sales Ratio
APP
22.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TSLA
10.60
Auto - Manufacturers Industry
- Max
- 7.43
- Q3
- 3.80
- Median
- 1.28
- Q1
- 0.60
- Min
- 0.16
With a P/S Ratio of 10.60, TSLA trades at a valuation that eclipses even the highest in the Auto - Manufacturers industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
APP
201.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
TSLA
13.59
Auto - Manufacturers Industry
- Max
- 13.96
- Q3
- 7.23
- Median
- 2.02
- Q1
- 0.91
- Min
- 0.31
TSLA’s P/B Ratio of 13.59 is in the upper tier for the Auto - Manufacturers industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | APP | TSLA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 60.47 | 158.31 |
| Forward PEG Ratio (TTM) | 2.46 | 3.77 |
| Price-to-Sales Ratio (P/S, TTM) | 22.51 | 10.60 |
| Price-to-Book Ratio (P/B, TTM) | 201.77 | 13.59 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 45.64 | 149.61 |
| EV-to-EBITDA (TTM) | 45.16 | 72.43 |
| EV-to-Sales (TTM) | 23.13 | 10.56 |