Analyzing ECD Automotive Design (NASDAQ:ECDA) and Tesla (NASDAQ:TSLA)

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

Profitability

This table compares ECD Automotive Design and Tesla’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECD Automotive Design	N/A	N/A	N/A
Tesla	13.07%	10.24%	6.08%

Risk & Volatility

ECD Automotive Design has a beta of -1.56, suggesting that its stock price is 256% less volatile than the S&P 500. Comparatively, Tesla has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500.

Insider & Institutional Ownership

94.8% of ECD Automotive Design shares are held by institutional investors. Comparatively, 66.2% of Tesla shares are held by institutional investors. 77.3% of ECD Automotive Design shares are held by company insiders. Comparatively, 20.7% of Tesla shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares ECD Automotive Design and Tesla”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECD Automotive Design	$25.73 million	1.25	-$1.60 million	N/A	N/A
Tesla	$97.15 billion	13.91	$15.00 billion	$3.65	115.36

Tesla has higher revenue and earnings than ECD Automotive Design.

Analyst Recommendations

This is a breakdown of current recommendations for ECD Automotive Design and Tesla, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECD Automotive Design	0	0	1	0	3.00
Tesla	9	14	16	1	2.23

ECD Automotive Design presently has a consensus price target of $9.00, suggesting a potential upside of 867.74%. Tesla has a consensus price target of $272.06, suggesting a potential downside of 35.39%. Given ECD Automotive Design’s stronger consensus rating and higher possible upside, analysts clearly believe ECD Automotive Design is more favorable than Tesla.

Summary

Tesla beats ECD Automotive Design on 9 of the 13 factors compared between the two stocks.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.

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.