Over the past three months, one of the leaders of growth in the S&P 500 index was the automotive industry (Automobiles) +84.1%.
The largest (by market capitalization) companies in this industry: Tesla ($1.40T), one of the largest manufacturers of electric vehicles (more than 1.8 million cars per year) and energy equipment in the world, and General Motors ($57.5B), an automotive concern with a 16.5% market share in the United States.
Based on the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.
As we can see, in terms of fundamental data assessment, General Motors is superior to Tesla in terms of profitability and sustainability.
Over the past 3 months, Tesla shares have risen by +92.3%, while General Motors has increased by +12.0% (the S&P 500 index has risen by +7.3%). Tesla has not only outperformed its closest competitor, but also demonstrated better results compared to the index.
So, the winner in this issue is General Motors. Although Tesla shares show better profitability, and General Motors’ business outperforms its competitor in terms of changes in return on assets and financing.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
