WallStSmart

Carvana Co (CVNA)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 314% more annual revenue ($103.62B vs $25.06B). CVNA leads profitability with a 6.3% profit margin vs 3.7%. CVNA trades at a lower P/E of 34.9x. CVNA earns a higher WallStSmart Score of 58/100 (C).

CVNA

Buy

58

out of 100

Grade: C

Growth: 9.3Profit: 7.0Value: 3.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.18

TSLA

Avoid

31

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 2.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVNASignificantly Overvalued (-53.2%)

Margin of Safety

-53.2%

Fair Value

$45.35

Current Price

$70.85

$25.50 premium

UndervaluedFair: $45.35Overvalued
TSLASignificantly Overvalued (-23.5%)

Margin of Safety

-23.5%

Fair Value

$260.29

Current Price

$328.58

$68.29 premium

UndervaluedFair: $260.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVNA4 strengths · Avg: 9.8/10
Return on EquityProfitability
42.9%10/10

Every $100 of equity generates 43 in profit

Revenue GrowthGrowth
52.4%10/10

Revenue surging 52.4% year-over-year

EPS GrowthGrowth
61.5%10/10

Earnings expanding 61.5% YoY

Market CapQuality
$101.23B9/10

Large-cap with strong market position

TSLA3 strengths · Avg: 9.0/10
Market CapQuality
$1.29T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
25.5%8/10

Revenue surging 25.5% year-over-year

Areas to Watch

CVNA4 concerns · Avg: 3.5/10
P/E RatioValuation
34.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.7x4/10

Trading at 12.7x book value

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.493/10

Elevated debt levels

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
14.7x4/10

Trading at 14.7x book value

Return on EquityProfitability
4.4%3/10

ROE of 4.4% — below average capital efficiency

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 52.4% demonstrates continued momentum.

Bull Case : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 25.5% demonstrates continued momentum.

Bear Case : CVNA

The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.

Bear Case : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 300.3x leaves little room for execution misses. Thin 3.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

CVNA profiles as a hypergrowth stock while TSLA is a growth play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.49 — expect wider price swings.

CVNA is growing revenue faster at 52.4% — sustainability is the question.

CVNA generates stronger free cash flow (56M), providing more financial flexibility.

Bottom Line

CVNA scores higher overall (58/100 vs 31/100) and 52.4% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

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Tesla Inc

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.

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