Harley-Davidson (NYSE:HOG – Get Free Report) and Tesla (NASDAQ:TSLA – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for Harley-Davidson and Tesla, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harley-Davidson | 4 | 4 | 2 | 1 | 2.00 |
| Tesla | 9 | 15 | 19 | 0 | 2.23 |
Harley-Davidson presently has a consensus target price of $21.67, indicating a potential downside of 7.79%. Tesla has a consensus target price of $398.61, indicating a potential downside of 0.50%. Given Tesla’s stronger consensus rating and higher possible upside, analysts clearly believe Tesla is more favorable than Harley-Davidson.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harley-Davidson | $4.47 billion | 0.57 | $338.74 million | $2.61 | 9.00 |
| Tesla | $94.83 billion | 15.85 | $3.79 billion | $1.08 | 370.94 |
Tesla has higher revenue and earnings than Harley-Davidson. Harley-Davidson is trading at a lower price-to-earnings ratio than Tesla, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Harley-Davidson has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Tesla has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500.
Institutional & Insider Ownership
85.1% of Harley-Davidson shares are held by institutional investors. Comparatively, 66.2% of Tesla shares are held by institutional investors. 0.9% of Harley-Davidson shares are held by insiders. Comparatively, 19.9% of Tesla shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Harley-Davidson and Tesla’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harley-Davidson | 8.03% | 10.27% | 3.15% |
| Tesla | 4.00% | 4.86% | 2.93% |
Summary
Tesla beats Harley-Davidson on 9 of the 15 factors compared between the two stocks.
About Harley-Davidson
Harley-Davidson, Inc. manufactures and sells motorcycles in the United States and internationally. The company operates in three segments: Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services. The Harley-Davidson Motor Company segment designs, manufactures, and sells motorcycles, including cruiser, trike, touring, standard, sportbike, adventure, and dual sport, as well as motorcycle parts, accessories, and apparel, as well as licenses its trademarks and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels. The LiveWire segment sells electric motorcycles, balance bikes for kids, parts and accessories, apparel, and related parts and services. The Harley-Davidson Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and parts and accessories; and retail financing services, such as installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale insurance and voluntary protection products. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin.
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.
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