Tesla, Inc. (TSLA)vs Intel Corp. (INTC)

Quick verdict

Tesla and Intel sit at opposite ends of the profitability and valuation spectrum. Tesla commands a premium rating (P/E TTM 329.16, forward P/E 26.25, EV/EBITDA 122.7) but is genuinely profitable, with a 19.07% gross margin and 3.96% net margin. Intel trades far cheaper on sales (P/S 10.07, P/B 4.92) but is currently loss-making, shown by a TTM P/E of -173.81, operating margin of -9.45% and ROE of -2.95%. Verdicts rate Tesla 'A' for quality against Intel's 'B', yet Intel's overall score of 4 beats Tesla's 2, aided by a 3.66% dividend yield, stronger balance sheet ratios and a 103.11% one-year return versus Tesla's 19.92%. Growth trends are mixed for both: Tesla's 3-year EPS CAGR is -47.09%, Intel's is +98.66% off a low base. Neither figure implies consistent momentum, so the choice depends heavily on tolerance for loss-making turnarounds versus paying up for an established, higher-margin business.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Tesla, Inc. designs, manufactures and sells electric vehicles globally alongside energy generation and storage products, operating in the Consumer Cyclical sector under Auto Manufacturers. Its scale is reflected in a market capitalisation of approximately $1.49 trillion. Intel Corp. operates in Technology, within Semiconductors, spanning CCG, DCAI and Intel Foundry segments, designing and manufacturing computing products with a market capitalisation of roughly $541.6 billion. Both are large, US-listed, internationally operating companies, but Tesla is a consumer-facing hardware and energy company while Intel is a foundational semiconductor and foundry business serving enterprise and consumer computing markets. Their differing industries mean direct comparison is best framed around financial metrics rather than product overlap, though both companies face capital-intensive manufacturing models, evidenced by significant total debt levels of $29.63 billion for Tesla and $21.77 billion for Intel.

Valuation

Tesla's valuation multiples sit at extreme levels: a TTM P/E of 329.16, price-to-sales of 15.2, price-to-book of 15.23, and EV/EBITDA of 122.7, though the forward P/E falls to 26.25, suggesting the market expects material earnings growth. Its PEG ratio of -8.42 is not meaningful given negative EPS CAGR inputs. Intel's TTM P/E is negative (-173.81) due to a net loss, but its forward P/E of 40.53 indicates expected profitability recovery. Intel is considerably cheaper on price-to-sales (10.07 versus 15.2) and price-to-book (4.92 versus 15.23). Both carry a PEG ratio that is not economically meaningful (-8.42 and -0.02 respectively) given negative or distorted growth inputs. The valuation verdict is 'B' for both, indicating neither is classified as clearly cheap or expensive on a blended basis, despite Tesla's headline multiples appearing far higher across most metrics.

Growth profile

Growth trends are inconsistent for both companies. Tesla's revenue CAGR is negative over three years (-2.93%) but positive over five (3.84%), while its EPS CAGR is sharply negative over three years (-47.09%) yet modestly positive over five (2.68%), pointing to recent earnings pressure after longer-term expansion. Intel shows a similar pattern in reverse: revenue CAGR is slightly negative over three years (-0.47%) but strongly positive over five (14.27%), while EPS CAGR is positive over three years (98.66%, likely reflecting a low or negative base) and 9.28% over five years. Both carry a 'B' growth verdict, suggesting neither demonstrates a clean, sustained growth trajectory across all timeframes measured, with recent multi-year figures for both companies showing signs of deceleration or volatility rather than consistent compounding.

Profitability and quality

Tesla is the more profitable business on current figures, posting a 19.07% gross margin, 5% operating margin, 3.96% net margin, 4.79% ROE and 3.18% ROIC. Intel's profitability metrics are negative across the board over the trailing period: a -9.45% operating margin, -5.9% net margin, -2.95% ROE and -2.81% ROIC, despite a higher gross margin of 35.43%. This gap explains Tesla's 'A' quality verdict against Intel's 'B'. Intel's higher gross margin suggests underlying product economics remain reasonable, but heavier operating costs or charges have pushed it into a net loss, whereas Tesla converts a lower gross margin into a positive, if modest, bottom line. Free cash flow yield is broadly similar, at 4.45% for Tesla and 3.54% for Intel, indicating both generate positive free cash flow despite differing accounting profitability.

Balance-sheet risk

Both companies carry investment-grade-style balance sheet characteristics, earning an 'A' balance sheet verdict. Tesla holds $66.09 billion in cash against $29.63 billion total debt, a net debt/EBITDA of 1.01, current ratio of 2.04, and interest coverage of 28.11. Intel holds $52.43 billion cash against $21.77 billion debt, a higher net debt/EBITDA of 2.98, a current ratio of 2.31, and interest coverage of 14.63. Tesla's lower leverage ratio and higher interest coverage indicate a stronger capacity to service debt from earnings, while Intel's higher net debt/EBITDA reflects its currently depressed profitability rather than excessive absolute debt. Both maintain current ratios above 2, indicating comfortable short-term liquidity positions relative to current liabilities.

Price performance and shareholder returns

Recent share price performance diverges sharply from longer-term trends. Tesla is down -18.98% year-to-date but up 19.92% over one year, with a strong 47.68% annualised three-year return, though its five-year annualised return is just 0.35% and it has experienced a maximum drawdown of -63.77%. Intel is down -25.9% year-to-date but up a substantial 103.11% over one year, with a 12.79% three-year annualised return and a stronger 27.8% five-year annualised return, alongside a shallower maximum drawdown of -45.25%. Both carry high beta values (1.802 for Tesla, 2.187 for Intel), indicating above-market volatility. The momentum verdict is 'B' for both, reflecting mixed signals: strong one-year gains offset by negative year-to-date performance and, in Tesla's case, a materially deeper historical drawdown.

Which stock fits which investor

Based on the supplied verdicts, Tesla is flagged as best suited to investors prioritising quality, given its 'A' quality rating and positive net margin, ROE and ROIC figures despite a high valuation. Intel is flagged as best suited to investors focused on value, growth, or income, reflecting its cheaper price-to-sales and price-to-book ratios, higher one-year and five-year annualised returns, and notably its 3.66% dividend yield against Tesla's 0.37%. Tesla's style tag of 'mature, high-volatility' points to an established but price-volatile profile, while Intel's 'income, mature' tag emphasises its dividend and established market position despite recent losses. Intel's overall score of 4 versus Tesla's 2 suggests a more balanced profile across the verdict categories overall, though this should be read alongside Intel's currently negative profitability metrics.

• Value: INTC
• Growth: INTC
• Income: INTC
• Quality: TSLA

Frequently asked questions

Which company is more profitable right now?

Tesla is currently more profitable, with a 5% operating margin, 3.96% net margin, 4.79% ROE and 3.18% ROIC. Intel shows negative figures across these same metrics, including a -9.45% operating margin and -2.95% ROE, reflecting a net loss over the trailing period.

Which stock looks cheaper on valuation?

Intel appears cheaper on price-to-sales (10.07 versus 15.2) and price-to-book (4.92 versus 15.23). Tesla's TTM P/E of 329.16 is far higher than what Intel's negative TTM P/E implies, though Intel's forward P/E of 40.53 versus Tesla's 26.25 shows the market expects faster earnings recovery priced into Tesla. Both carry a 'B' valuation verdict.

Which company has a stronger balance sheet?

Both are rated 'A' for balance sheet strength. Tesla has a lower net debt/EBITDA of 1.01 versus Intel's 2.98 and higher interest coverage of 28.11 versus 14.63, though Intel has a slightly higher current ratio of 2.31 versus Tesla's 2.04.

How have the two stocks performed recently?

Both are down year-to-date, Tesla -18.98% and Intel -25.9%, but both show strong one-year gains, with Intel up 103.11% and Tesla up 19.92%. Over three years, Tesla's annualised return of 47.68% exceeds Intel's 12.79%, while over five years Intel's 27.8% annualised return exceeds Tesla's 0.35%.

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