Tesla Inc. and Cheetah Net Supply Chain Service Inc. are both engaged in the automotive sector, but they present distinct investment profiles. This article compares the two companies across several key financial metrics, including analyst recommendations, profitability, valuation, and risk factors.
Volatility and Risk Assessment
Tesla’s stock, listed under NASDAQ:TSLA, exhibits a beta of 2.06, indicating that it is approximately 106% more volatile than the S&P 500 index. In contrast, Cheetah Net Supply Chain Service, trading as NASDAQ:CTNT, has a beta of 1.93, suggesting its stock is 93% more volatile than the benchmark. This heightened volatility in both stocks may appeal to investors willing to tolerate greater risk for potentially higher returns.
Profitability and Earnings Comparison
When evaluating profitability, Tesla outperforms Cheetah Net Supply Chain Service in several areas, including net margins and return on equity. The latest financial data shows that Tesla has significantly higher gross revenues and earnings per share compared to its competitor. While Cheetah Net operates at a lower price-to-earnings ratio, suggesting it may be more affordable, Tesla’s robust earnings position it as a more lucrative investment at present.
Market analysts have provided a consensus target price of $391.08 for Tesla, indicating a potential downside of approximately 8.95%. This analysis has led to a stronger consensus rating for Tesla, with many analysts favoring it over Cheetah Net Supply Chain Service.
In summary, Tesla has the edge over Cheetah Net Supply Chain Service in 14 out of 15 comparative factors, highlighting its superior performance in most key areas.
Company Profiles
Tesla Inc., headquartered in Austin, Texas, designs and manufactures electric vehicles and energy storage systems. The company operates mainly through two segments: Automotive and Energy Generation and Storage. Tesla’s automotive segment includes electric vehicles, regulatory credits, and various after-sales services. It also offers direct sales of both new and used vehicles, alongside a network of Superchargers and in-app upgrades.
The Energy Generation and Storage segment focuses on solar energy generation and storage solutions, catering to residential and commercial customers. Tesla was originally founded as Tesla Motors, Inc. in 2003 and rebranded to Tesla, Inc. in February 2017.
Conversely, Cheetah Net Supply Chain Service Inc. is based in Charlotte, North Carolina, and specializes in supplying parallel-import vehicles. The company sells various branded automobiles, including those from Mercedes, Lexus, and Toyota. Established in 2016, Cheetah Net was initially known as Yuan Qiu Business Group LLC and rebranded in March 2022. It operates as a subsidiary of Fairview Eastern International Holdings Limited.
As investors weigh their options, Tesla’s established market presence and performance metrics present a compelling case for those seeking robust investment opportunities in the electric vehicle sector. Meanwhile, Cheetah Net’s lower price-to-earnings ratio may attract those looking for more affordable stock options in the automotive market.
