Contrasting Tesla (NASDAQ:TSLA) and VinFast Auto (NASDAQ:VFS)

VinFast Auto (NASDAQ:VFS) and Tesla (NASDAQ:TSLA) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

66.2% of Tesla shares are held by institutional investors. 16.2% of VinFast Auto shares are held by company insiders. Comparatively, 20.7% of Tesla shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares VinFast Auto and Tesla’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VinFast Auto	-187.34%	N/A	-46.50%
Tesla	13.07%	10.24%	6.08%

Risk and Volatility

VinFast Auto has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Tesla has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for VinFast Auto and Tesla, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VinFast Auto	0	0	4	0	3.00
Tesla	9	16	14	0	2.13

VinFast Auto presently has a consensus price target of $9.00, suggesting a potential upside of 111.27%. Tesla has a consensus price target of $231.06, suggesting a potential downside of 30.59%. Given VinFast Auto’s stronger consensus rating and higher possible upside, equities research analysts plainly believe VinFast Auto is more favorable than Tesla.

Earnings and Valuation

This table compares VinFast Auto and Tesla”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VinFast Auto	$1.20 billion	N/A	-$2.40 billion	($1.14)	-3.74
Tesla	$97.15 billion	11.00	$15.00 billion	$3.65	91.20

Tesla has higher revenue and earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.

Summary

Tesla beats VinFast Auto on 11 of the 13 factors compared between the two stocks.

About VinFast Auto

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

About Tesla

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.