Navistar International (NAV) versus Tesla (TSLA) Financial Analysis
Navistar International (NYSE:NAV) and Tesla (NASDAQ:TSLA) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
This table compares Navistar International and Tesla’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Navistar International and Tesla’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Navistar International||$8.57 billion||0.44||$30.00 million||$0.51||75.59|
|Tesla||$11.76 billion||4.46||-$1.96 billion||($11.48)||-26.79|
Navistar International has higher earnings, but lower revenue than Tesla. Tesla is trading at a lower price-to-earnings ratio than Navistar International, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Navistar International and Tesla, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Navistar International presently has a consensus target price of $46.64, suggesting a potential upside of 20.98%. Tesla has a consensus target price of $312.07, suggesting a potential upside of 1.48%. Given Navistar International’s stronger consensus rating and higher possible upside, research analysts clearly believe Navistar International is more favorable than Tesla.
Insider & Institutional Ownership
80.0% of Navistar International shares are owned by institutional investors. Comparatively, 62.0% of Tesla shares are owned by institutional investors. 21.8% of Navistar International shares are owned by company insiders. Comparatively, 22.8% of Tesla shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Navistar International has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500. Comparatively, Tesla has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Navistar International beats Tesla on 10 of the 13 factors compared between the two stocks.
Navistar International Company Profile
Navistar International Corporation manufactures and sells commercial and military trucks, diesel engines, school and commercial buses, and service parts for trucks and diesel engines worldwide. The company operates through four segments: Truck, Parts, Global Operations, and Financial Services. It manufactures and distributes Class 4 through 8 trucks and buses in the common carrier, private carrier, government, leasing, construction, energy/petroleum, military vehicle, and student and commercial transportation markets under the International and IC brands; and designs, engineers, and produces sheet metal components, including truck cabs and engines. The company also provides customers with proprietary products needed to support the International commercial and military truck, IC bus, and engine lines, as well as other product lines; and a selection of other standard truck, trailer, and engine aftermarket parts. In addition, it designs and manufactures mid-range diesel engines, as well as provides customers with additional engine offerings in the agriculture, marine, and light truck markets; sells engines to original equipment manufacturers (OEM) for various on-and-off-road applications; and offers contract manufacturing services under the MWM brand to OEMs for the assembly of their engines. Further, the company provides retail, wholesale, and lease financing of products of its trucks and parts, as well as financing for wholesale and retail accounts receivable. It markets its commercial products through an independent dealer network, as well as through distribution and service network retail outlets; and its reconditioned used trucks to owner-operators and fleet buyers through its network of used truck dealers. As of October 31, 2017, it had approximately 728 outlets in the United States and Canada, and 87 outlets in Mexico. Navistar International Corporation was founded in 1902 and is headquartered in Lisle, Illinois.
Tesla Company Profile
Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers sedans and sport utility vehicles. It also provides electric vehicle powertrain components and systems to other manufacturers; and services for electric vehicles through its company-owned service centers, Service Plus locations, and Tesla mobile technicians. This segment sells its products through a network of company-owned stores and galleries. The Energy Generation and Storage segment offers energy storage products, such as rechargeable lithium-ion battery systems for use in homes, commercial facilities, and utility grids; designs, manufactures, installs, maintains, leases, and sells solar energy systems to residential and commercial customers; and sell renewable energy to residential and commercial customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was founded in 2003 and is headquartered in Palo Alto, California.
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