Tesla, Inc. (TSLA)vs SMCI Holdings, Inc. (SMCI)

Quick verdict

TSLA and SMCI Holdings sit at opposite ends of the valuation and profitability spectrum, earning a tied verdict on valuation. TSLA trades on a trailing P/E of 329.16 (forward 26.25) and EV/EBITDA of 122.7, reflecting high growth expectations despite a 3-year revenue CAGR of -2.93%. SMCI posts no meaningful P/E (TTM and forward both 0) alongside negative net margin (-7.89%) and negative ROE (-18.28%), though its P/B of 2.94 is far lower than TSLA's 15.23. TSLA scores higher on momentum (A) with a 1-year return of 19.92% versus SMCI's -1.45%, while SMCI carries the higher overall score (3.5 vs 2.5) largely on balance sheet and income metrics, including a 3.17% dividend yield versus TSLA's 0.37%. Both carry elevated beta (1.802 and 1.65 respectively), indicating above-market volatility for either holding.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Tesla, Inc. designs, manufactures and distributes electric vehicles globally, alongside energy generation and storage products, operating within the Consumer Cyclical sector under Auto - Manufacturers. SMCI Holdings, Inc. is classified within Healthcare, under Drug Manufacturers, per the supplied data. The two companies therefore operate in fundamentally different sectors, limiting direct like-for-like operational comparison. TSLA's market capitalisation of approximately $1.49 trillion dwarfs SMCI's stated $2.79 trillion figure only nominally larger in the data provided, though average trading volume differs sharply: TSLA averages 53,148,093 shares versus SMCI's 6,948,678, pointing to considerably higher liquidity and trading activity for TSLA.

Valuation

Valuation is scored a tie between the two names. TSLA's trailing P/E of 329.16 and price-to-sales of 15.2 reflect a premium likely tied to growth expectations, though its forward P/E of 26.25 suggests anticipated earnings expansion. Its PEG ratio of -8.42 is not meaningful given negative underlying growth inputs. SMCI shows no TTM or forward P/E (both 0) and a PEG of 0, limiting earnings-based comparison, but its price-to-book of 2.94 is substantially lower than TSLA's 15.23, and its EV/EBITDA of 15.52 is far below TSLA's 122.7. TSLA's free cash flow yield of 4.45% also exceeds SMCI's 0.61%, indicating relatively stronger cash generation relative to price for TSLA despite its higher earnings multiples.

Growth profile

SMCI holds the growth verdict (B) though TSLA's growth metrics are also mixed. TSLA's revenue CAGR stands at -2.93% over three years and 3.84% over five years, while its EPS CAGR is -47.09% over three years but 2.68% over five years, indicating recent earnings pressure despite longer-term stability. SMCI's revenue CAGR is -4.30% (3-year) and -4.43% (5-year), with EPS CAGR of -5.59% (3-year) and -2.88% (5-year), reflecting consistent contraction across both revenue and earnings over the periods measured. Neither company shows clearly positive growth trajectories across all timeframes in the supplied data, though TSLA's 5-year revenue and EPS CAGRs are both positive, unlike SMCI's negative figures across all four growth metrics shown.

Profitability and quality

TSLA holds the quality verdict (A), supported by positive profitability metrics: gross margin of 19.07%, operating margin of 5%, net margin of 3.96%, ROE of 4.79% and ROIC of 3.18%. SMCI's figures are negative across the board: operating margin of -12.96%, net margin of -7.89%, ROE of -18.28% and ROIC of -5.07%, despite a higher gross margin of 33.70% compared with TSLA. This indicates that while SMCI retains more revenue after cost of goods sold, expenses further down the income statement erode profitability, whereas TSLA converts a lower gross margin into positive bottom-line returns across all measured profitability ratios.

Balance-sheet risk

SMCI is rated higher on balance sheet strength (B) alongside TSLA (also B), with data showing distinct profiles. TSLA holds cash of $66.09 billion against total debt of $29.63 billion, a net debt/EBITDA of 1.01, current ratio of 2.04 and interest coverage of 28.11. SMCI reports cash of $34.99 billion versus total debt of $29.82 billion, giving a negative net debt/EBITDA of -0.86 (indicating net cash position relative to EBITDA), a higher current ratio of 2.88, and stronger interest coverage of 43.56. Both companies show comfortable liquidity positions, though SMCI's net cash position and higher current ratio suggest marginally more balance sheet flexibility per the supplied figures.

Price performance and shareholder returns

TSLA is rated A for momentum versus an implied lower rating for SMCI, and recent return data supports this divergence. TSLA's 1-year return is 19.92% and 3-year annualised return is 47.68%, though its year-to-date return is -18.98% and 5-year annualised return is a modest 0.35%, with a maximum 5-year drawdown of -63.77%. SMCI's 1-year return is -1.45% and 3-year annualised return is just 0.78%, but its year-to-date return of 23.16% and 5-year annualised return of 32.67% are stronger over those windows, alongside a shallower maximum drawdown of -26.29%. This suggests SMCI has experienced less severe historical volatility despite TSLA's higher beta of 1.802 versus 1.65.

Which stock fits which investor

Based on the supplied verdicts, TSLA is flagged as best suited to investors prioritising quality, given its positive profitability metrics including net margin of 3.96% and ROE of 4.79%. SMCI is flagged as best suited to investors focused on value, growth, or income, supported by its lower P/B of 2.94, dividend yield of 3.17%, and payout ratio of 22.96%, alongside its higher overall score of 3.5 versus TSLA's 2.5. Both carry above-market beta (1.802 and 1.65) and are tagged as mature holdings, with TSLA additionally noted for high volatility, reflected in its -63.77% maximum 5-year drawdown compared with SMCI's -26.29%.

• Value: SMCI
• Growth: SMCI
• Income: SMCI
• Quality: TSLA

Frequently asked questions

Which company has a stronger balance sheet, TSLA or SMCI?

Both are rated B for balance sheet strength. TSLA holds $66.09 billion in cash against $29.63 billion in debt (net debt/EBITDA of 1.01), while SMCI holds $34.99 billion in cash against $29.82 billion in debt, giving a net cash position (net debt/EBITDA of -0.86). SMCI also shows a higher current ratio of 2.88 versus TSLA's 2.04 and stronger interest coverage of 43.56 versus 28.11.

How do TSLA and SMCI compare on profitability?

TSLA is rated A for quality with positive metrics across the board: net margin of 3.96%, ROE of 4.79% and ROIC of 3.18%. SMCI shows negative net margin (-7.89%), negative ROE (-18.28%) and negative ROIC (-5.07%), despite a higher gross margin of 33.70% versus TSLA's 19.07%.

Which stock has performed better recently?

Over 1 year, TSLA returned 19.92% versus SMCI's -1.45%. Year-to-date, however, SMCI returned 23.16% versus TSLA's -18.98%. Over 3 years annualised, TSLA returned 47.68% versus SMCI's 0.78%, while over 5 years annualised, SMCI's 32.67% outpaced TSLA's 0.35%.

Does either company pay a dividend?

Yes, both do based on the supplied data. SMCI has a dividend yield of 3.17% with a payout ratio of 22.96%, while TSLA has a dividend yield of 0.37% with a payout ratio of 44.83%.

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