Robinhood, the popular online trading platform’s easy investment opportunities and zero-commission policy, has made it the darling of the new generation.
Besides making a killing off memestocks, the two stocks that are very popular with the clientele of the app are Apple and Tesla. Both are among the top 15 stocks on the platform.
Apple (AAPL) enjoys rank 13 on the Robinhood 100 list. Tesla (TSLA) follows in its footsteps and places 14 on the list.
Robinhood gained in popularity in the last two years as during the pandemic, many bored youngsters with easy access to money turned to the app to try their luck in trading shares. The company reported 22.50 million user accounts in the second quarter of 2021, a 130% increase from 9.80 million in the same period last year.
So how have Tesla and Apple performed in the last one year? Tesla has made huge strides in its share prices, but as far as some analysts are concerned, they still believe the company is somewhat of a paper tiger. Apple invokes more trust and is seen as a safer bet.
POWR Ratings
AAPL has an overall rating of B, which equates to Buy. On the other hand, TSLA has an overall rating of C, which translates to Neutral. The POWR Ratings are calculated considering 118 different factors, each with its own weighting. The stock has an A grade for Quality, and a B grade for Growth, Momentum, and Sentiment.
Out of the 25 Wall Street analysts that rated AAPL, 19 rated it buy, and the other six rated it hold. Tesla was rated as buy by 12 out of 26 Wall Street analysts, seven rated it hold, and the rest 7 advised sell.
TSLA gained 27.8% over the past six months, while AAPL returned 17.7% over the same period. In the past one year TSLA gained 86.4% and AAPL 25.2%.
For the fiscal third-quarter ending June 26, AAPL reported revenue of $81.43 billion, up 36.4% year-over-year and a net profit of $76.02 billion. This marks a new June quarter revenue record. Its net income grew 93.2% from the year-ago value to $21.74 billion. Its EPS increased 100% year-over-year to $1.30.
TSLA’s total revenues increased 98.1% year-over-year to $11.96 billion in the fiscal second quarter ended June 30. Gross profit stood at $2.88 billion, up 127.6% from the same period last year. Net income attributable to common stockholders grew 998.1% from the year-ago value to $1.14 billion. The company’s EPS increased 920% year-over-year to $1.02.
Analysts expect AAPL’s revenue to increase 30.9% in the current quarter, 33.5% in the current year, and 3.9% in the next year. The company’s EPS is expected to grow 68.5% in the current quarter, 70.4% in the current year, and 1.6% in the next year. Moreover, its EPS is expected to grow 19.9% per annum over the next five years.
On the other hand, TSLA’s revenues grew at a CAGR of 45.2% over the past three years. Analysts expect the company’s revenue to increase 50.2% in the current quarter, 59.1% in the current year, and 34.4% in the following year. The company’s EPS is expected to grow 88.2% in the current quarter, 140.2% in the current year, and 32.3% in the next year. Moreover, TSLA’s EPS is expected to grow 51.8% per annum over the next five years.
AAPL is more profitable with a gross profit margin and EBITDA margin of 41.01% and 31.96%, compared to TSLA’s 22.04% and 13.74%, respectively.
TSLA is currently trading at 212.15x, 87.9% higher than AAPL’s 25.60x.
Both Tesla and Apple stocks have shown tremendous growth in the past one year and are rated to do so in the coming future. But if we go by profitability and lower valuation, then Apple is a better buy.
