Comprehensive Stock Comparison
Compare Toyota Motor Corporation (TM) vs Tesla, Inc. (TSLA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TM | 6.5% revenue growth vs TSLA's -2.9% |
| Value | TM | Lower P/E (0.1x vs 202.8x), PEG 0.00 vs 5.23 |
| Quality / Margins | TM | 9.4% net margin vs TSLA's 4.0% |
| Stability / Safety | TM | Beta 0.93 vs TSLA's 2.16 |
| Dividends | TM | 2.3% yield; 4-year raise streak; TSLA pays no meaningful dividend |
| Momentum (1Y) | TSLA | +37.4% vs TM's +36.7% |
| Efficiency (ROA) | TM | 4.7% ROA vs TSLA's 2.8%, ROIC 5.6% vs 4.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Toyota is one of the world's largest automakers, manufacturing and selling vehicles across nearly every segment — from compact cars to luxury sedans and trucks. It generates most of its revenue from automotive sales (around 90%), supplemented by financial services (about 8%) that provide financing and leasing to customers. The company's key advantage is its legendary manufacturing efficiency — particularly the Toyota Production System — which delivers industry-leading quality and cost control while pioneering hybrid technology with its Prius platform.
Tesla is an electric vehicle and clean energy company that designs, manufactures, and sells battery-electric vehicles, solar energy systems, and energy storage solutions. It generates most of its revenue from automotive sales—roughly 85%—with the remainder coming from energy generation/storage products and regulatory credit sales. Tesla's key competitive advantage lies in its vertically integrated manufacturing, proprietary battery technology, and industry-leading Supercharger network that creates a comprehensive ecosystem.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TM leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). TSLA leads in 1 (Total Returns).
Financial Metrics (TTM)
TM is the larger business by revenue, generating $49.39T annually — 520.8x TSLA's $94.8B. TM is the more profitable business, keeping 9.4% of every revenue dollar as net income compared to TSLA's 4.0%. On growth, TM holds the edge at +8.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TMToyota Motor Corp… | TSLATesla, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $49.39T | $94.8B |
| EBITDAEarnings before interest/tax | $6.59T | $10.5B |
| Net IncomeAfter-tax profit | $4.63T | $3.8B |
| Free Cash FlowCash after capex | $147.8B | $6.2B |
| Gross MarginGross profit ÷ Revenue | +18.0% | +18.0% |
| Operating MarginEBIT ÷ Revenue | +8.8% | +4.6% |
| Net MarginNet income ÷ Revenue | +9.4% | +4.0% |
| FCF MarginFCF ÷ Revenue | +0.3% | +6.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.2% | -3.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +65.7% | -63.5% |
Valuation Metrics
At 10.5x trailing earnings, TM trades at a 97% valuation discount to TSLA's 372.7x P/E. Adjusting for growth (PEG ratio), TM offers better value at 0.52x vs TSLA's 9.62x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TMToyota Motor Corp… | TSLATesla, Inc. |
|---|---|---|
| Market CapShares × price | $315.9B | $1.51T |
| Enterprise ValueMkt cap + debt − cash | $506.8B | $1.50T |
| Trailing P/EPrice ÷ TTM EPS | 10.53x | 372.69x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.08x | 202.78x |
| PEG RatioP/E ÷ EPS growth rate | 0.52x | 9.62x |
| EV / EBITDAEnterprise value multiple | 11.23x | 142.98x |
| Price / SalesMarket cap ÷ Revenue | 1.03x | 15.92x |
| Price / BookPrice ÷ Book value/share | 1.35x | 17.19x |
| Price / FCFMarket cap ÷ FCF | — | 242.74x |
Profitability & Efficiency
TM delivers a 12.0% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $5 for TSLA. TSLA carries lower financial leverage with a 0.10x debt-to-equity ratio, signaling a more conservative balance sheet compared to TM's 1.05x. On the Piotroski fundamental quality scale (0–9), TSLA scores 6/9 vs TM's 5/9, reflecting solid financial health.
| Metric | TMToyota Motor Corp… | TSLATesla, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +12.0% | +4.6% |
| ROA (TTM)Return on assets | +4.7% | +2.8% |
| ROICReturn on invested capital | +5.6% | +4.5% |
| ROCEReturn on capital employed | +7.7% | +4.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 1.05x | 0.10x |
| Net DebtTotal debt minus cash | $29.81T | -$8.1B |
| Cash & Equiv.Liquid assets | $8.98T | $16.5B |
| Total DebtShort + long-term debt | $38.79T | $8.4B |
| Interest CoverageEBIT ÷ Interest expense | 38.49x | 16.62x |
Total Returns (with DRIP)
A $10,000 investment in TM five years ago would be worth $17,804 today (with dividends reinvested), compared to $16,808 for TSLA. Over the past 12 months, TSLA leads with a +37.4% total return vs TM's +36.7%. The 3-year compound annual growth rate (CAGR) favors TSLA at 25.1% vs TM's 23.7% — a key indicator of consistent wealth creation.
| Metric | TMToyota Motor Corp… | TSLATesla, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +11.2% | -8.1% |
| 1-Year ReturnPast 12 months | +36.7% | +37.4% |
| 3-Year ReturnCumulative with dividends | +89.4% | +95.7% |
| 5-Year ReturnCumulative with dividends | +78.0% | +68.1% |
| 10-Year ReturnCumulative with dividends | +174.4% | +3044.6% |
| CAGR (3Y)Annualised 3-year return | +23.7% | +25.1% |
Risk & Volatility
TM is the less volatile stock with a 0.93 beta — it tends to amplify market swings less than TSLA's 2.16 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TM currently trades 97.4% from its 52-week high vs TSLA's 80.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TMToyota Motor Corp… | TSLATesla, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.93x | 2.16x |
| 52-Week HighHighest price in past year | $248.90 | $498.83 |
| 52-Week LowLowest price in past year | $155.00 | $214.25 |
| % of 52W HighCurrent price vs 52-week peak | +97.4% | +80.7% |
| RSI (14)Momentum oscillator 0–100 | 59.2 | 44.1 |
| Avg Volume (50D)Average daily shares traded | 254K | 52.3M |
Analyst Outlook
Wall Street rates TM as "Hold" and TSLA as "Hold". Consensus price targets imply 14.0% upside for TSLA (target: $459) vs -26.0% for TM (target: $179). TM is the only dividend payer here at 2.28% yield — a key consideration for income-focused portfolios.
| Metric | TMToyota Motor Corp… | TSLATesla, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $179.41 | $458.67 |
| # AnalystsCovering analysts | 15 | 80 |
| Dividend YieldAnnual dividend ÷ price | +2.3% | — |
| Dividend StreakConsecutive years of raises | 4 | — |
| Dividend / ShareAnnual DPS | $863.50 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +2.4% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 100 | 174.5 | +74.5% |
| Tesla, Inc. (TSLA) | 100 | 850.94 | +750.9% |
Toyota Motor Corpor… (TM) returned +78% over 5 years vs Tesla, Inc. (TSLA)'s +68%. A $10,000 investment in TM 5 years ago would be worth $17,804 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | $28.4T | $48.0T | +69.1% |
| Tesla, Inc. (TSLA) | $7.0B | $94.8B | +1254.6% |
Toyota Motor Corporation's revenue grew from $28.4T (2016) to $48.0T (2025) — a 6.0% CAGR. Tesla, Inc.'s revenue grew from $7.0B (2016) to $94.8B (2025) — a 33.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 8.1% | 9.9% | +21.8% |
| Tesla, Inc. (TSLA) | -9.6% | 4.0% | +141.5% |
Toyota Motor Corporation's net margin went from 8% (2016) to 10% (2025). Tesla, Inc.'s net margin went from -10% (2016) to 4% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 0.1 | 0.1 | +0.0% |
| Tesla, Inc. (TSLA) | 216.1 | 416.4 | +92.7% |
Toyota Motor Corporation has traded in a 0x–0x P/E range over 9 years; current trailing P/E is ~11x. Tesla, Inc. has traded in a 34x–416x P/E range over 5 years; current trailing P/E is ~373x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 1,470.7 | 3,595.6 | +144.5% |
| Tesla, Inc. (TSLA) | -0.31 | 1.08 | +448.4% |
Toyota Motor Corporation's EPS grew from $1470.70 (2016) to $3595.60 (2025) — a 10% CAGR. Tesla, Inc.'s EPS grew from $-0.31 (2016) to $1.08 (2025).
Chart 6Free Cash Flow — 5 Years
Toyota Motor Corporation generated $-1.6T FCF in 2025 (-21617% vs 2021). Tesla, Inc. generated $6B FCF in 2025 (+79% vs 2021).
TM vs TSLA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TM or TSLA a better buy right now?
Toyota Motor Corporation (TM) offers the better valuation at 10.5x trailing P/E (0.1x forward), making it the more compelling value choice. Analysts rate Toyota Motor Corporation (TM) a "Hold" — based on 15 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.
02Which has the better valuation — TM or TSLA?
On trailing P/E, Toyota Motor Corporation (TM) is the cheapest at 10.5x versus Tesla, Inc. at 372.7x. On forward P/E, Toyota Motor Corporation is actually cheaper at 0.1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Toyota Motor Corporation wins at 0.00x versus Tesla, Inc.'s 5.23x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — TM or TSLA?
Over the past 5 years, Toyota Motor Corporation (TM) delivered a total return of +78.0%, compared to +68.1% for Tesla, Inc. (TSLA). A $10,000 investment in TM five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TSLA returned +30.4% versus TM's +174.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TM or TSLA?
By beta (market sensitivity over 5 years), Toyota Motor Corporation (TM) is the lower-risk stock at 0.93β versus Tesla, Inc.'s 2.16β — meaning TSLA is approximately 133% more volatile than TM relative to the S&P 500. On balance sheet safety, Tesla, Inc. (TSLA) carries a lower debt/equity ratio of 10% versus 105% for Toyota Motor Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — TM or TSLA?
Toyota Motor Corporation (TM) is the more profitable company, earning 9.9% net margin versus 4.0% for Tesla, Inc. — meaning it keeps 9.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TM leads at 10.0% versus 4.6% for TSLA. At the gross margin level — before operating expenses — TM leads at 19.9%, 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.
06Is TM or TSLA more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Toyota Motor Corporation (TM) is the more undervalued stock at a PEG of 0.00x versus Tesla, Inc.'s 5.23x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Toyota Motor Corporation (TM) trades at 0.1x forward P/E versus 202.8x for Tesla, Inc. — 202.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSLA: 14.0% to $458.67.
07Which pays a better dividend — TM or TSLA?
In this comparison, TM (2.3% yield) pays a dividend. TSLA does not pay a meaningful dividend and should not be held primarily for income.
08Is TM or TSLA better for a retirement portfolio?
For long-horizon retirement investors, Toyota Motor Corporation (TM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.93), 2.3% yield, +174.4% 10Y return). Tesla, Inc. (TSLA) carries a higher beta of 2.16 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TM: +174.4%, TSLA: +30.4%), 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.
09What are the main differences between TM and TSLA?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: TM is a large-cap deep-value stock; TSLA is a mega-cap quality compounder stock. TM pays a dividend while TSLA does not, making them suitable for different income and tax situations. 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.