STEM vs TSLA

For growth investors, Stem, Inc.

(STEM) is the stronger pick with 8. 1% revenue growth year-over-year, versus -2. 9% for Tesla, Inc. (TSLA). Tesla, Inc. (TSLA) offers the better valuation at 360. 5x trailing P/E (201. 3x forward), making it the more compelling value choice. Analysts rate Stem, Inc. (STEM) a "Hold" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Tesla, Inc.

(TSLA) delivered a total return of +74. 1%, compared to -97. 6% for Stem, Inc. (STEM). Over 10 years, the gap is even starker: TSLA returned +26. 6% versus STEM's -94. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Tesla, Inc.

(TSLA) is the lower-risk stock at 2. 06β versus Stem, Inc. 's 3. 66β — meaning STEM is approximately 78% more volatile than TSLA relative to the S&P 500.

By revenue growth (latest reported year), Stem, Inc.

(STEM) is pulling ahead at 8. 1% versus -2. 9% for Tesla, Inc. (TSLA). On earnings-per-share growth, the picture is similar: Stem, Inc. grew EPS 91. 3% year-over-year, compared to -47. 0% for Tesla, Inc.. Over a 3-year CAGR, TSLA leads at 5. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Stem, Inc.

(STEM) is the more profitable company, earning 88. 2% net margin versus 4. 0% for Tesla, Inc. — meaning it keeps 88. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TSLA leads at 4. 6% versus -38. 7% for STEM. At the gross margin level — before operating expenses — STEM leads at 38. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for STEM: 95.

4% to $20. 67.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Tesla, Inc.

(TSLA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Stem, Inc. (STEM) carries a higher beta of 3. 66 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TSLA: +26. 6%, STEM: -94. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (STEM (Technology) and TSLA (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.