MSTR vs. TSLA: A Head-to-Head Stock Comparison

Company Overview

TSLA’s market capitalization of 960.90 billion USD is significantly greater than MSTR’s 93.59 billion USD, highlighting its more substantial market valuation.

MSTR’s beta of 3.76 points to significantly higher volatility compared to TSLA (beta: 2.46), suggesting MSTR has greater potential for both gains and losses relative to market movements.

Performance Comparison

This chart compares the performance of MSTR and TSLA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of MSTR and TSLA. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• MSTR’s Price-to-Earnings (P/E) ratio of -17.71 indicates negative earnings, signaling current unprofitability. TSLA, with a very high P/E ratio of 149.98, appears to have a valuation that either is significantly stretched or reflects high expectations for substantial future growth.
• TSLA’s Forward PEG ratio of 3.62 is very high. This signifies that its current stock price is notably elevated compared to its anticipated earnings growth rate, possibly indicating that the market has already factored in, or even exceeded, realistic future performance expectations.

Dividend Comparison

Neither MSTR nor TSLA currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section evaluates the financial strength of MSTR and TSLA. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• MSTR’s current ratio of 0.66 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.
• MSTR’s quick ratio of 0.66 is low. This suggests potential difficulty in meeting its immediate financial responsibilities with its most liquid assets (excluding inventory), possibly indicating a greater dependence on inventory turnover to service short-term debts.
• MSTR’s Interest Coverage Ratio (ICR) of -229.74 is negative. This implies its operating earnings are insufficient to meet its interest expenses, a serious situation that threatens its financial stability and capacity to honor debt commitments.