WallStSmart

Shake Shack Inc (SHAK)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 6464% more annual revenue ($97.88B vs $1.49B). TSLA leads profitability with a 4.0% profit margin vs 2.8%. SHAK appears more attractively valued with a PEG of 2.55. SHAK earns a higher WallStSmart Score of 51/100 (C-).

SHAK

Buy

51

out of 100

Grade: C-

Growth: 7.3Profit: 3.5Value: 4.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.31

TSLA

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 4.0Value: 2.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHAKUndervalued (+28.1%)

Margin of Safety

+28.1%

Fair Value

$135.04

Current Price

$63.05

$71.99 discount

UndervaluedFair: $135.04Overvalued
TSLASignificantly Overvalued (-18.9%)

Margin of Safety

-18.9%

Fair Value

$258.56

Current Price

$298.32

$39.76 premium

UndervaluedFair: $258.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHAK1 strengths · Avg: 8.0/10
EPS GrowthGrowth
28.7%8/10

Earnings expanding 28.7% YoY

TSLA3 strengths · Avg: 9.0/10
Market CapQuality
$1.40T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.8%8/10

15.8% revenue growth

Areas to Watch

SHAK4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Debt/EquityHealth
1.783/10

Elevated debt levels

PEG RatioValuation
2.552/10

Expensive relative to growth rate

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
13.3x4/10

Trading at 13.3x book value

Return on EquityProfitability
4.4%3/10

ROE of 4.4% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : SHAK

The strongest argument for SHAK centers on EPS Growth. Revenue growth of 14.3% demonstrates continued momentum.

Bull Case : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 15.8% demonstrates continued momentum.

Bear Case : SHAK

The primary concerns for SHAK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 58.1x leaves little room for execution misses. Debt-to-equity of 1.78 is elevated, increasing financial risk.

Bear Case : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 346.3x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

SHAK profiles as a value stock while TSLA is a growth play — different risk/reward profiles.

TSLA carries more volatility with a beta of 1.80 — expect wider price swings.

TSLA is growing revenue faster at 15.8% — sustainability is the question.

SHAK generates stronger free cash flow (-17M), providing more financial flexibility.

Bottom Line

SHAK scores higher overall (51/100 vs 33/100) and 14.3% 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.

Shake Shack Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.

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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