Tesla Motors Inc (TSLA) and Apple Inc. (AAPL): One of a Kind?

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Although I think both companies could benefit from this, I don’t see it happening in reality. Apple Inc. (NASDAQ:AAPL) doesn’t have a history of making large acquisitions, and it would likely cause confusion among customers. What would the vehicles be called? Would they stick with the Tesla brand, or have “iCars” driving around? It is interesting to think about, but we should probably focus on what these companies can provide to investors right now.

Should you buy in?

That’s up to you, but both companies offer something completely different to investors. Apple provides a solid company, with a great history. The stock is cheap, as it currently shows a 10.1% earnings yield, 11.3% free cash flow yield, and a P/E of 10.

Apple’s stock has fallen nearly 32% in the past year. However, even with a falling stock, the company plans on releasing $100 billion to shareholders by 2015. It is expected to be largely in the form of dividends, an area in which the company already shows a 2.6% yield. Is that what you are looking? If not, you might find Tesla more appealing.

The metrics aren’t there for Tesla Motors Inc (NASDAQ:TSLA). It’s simple, they are young, fairly un-established, and still pretty volatile (in comparison to a company like Apple Inc. (NASDAQ:AAPL)). Yes, you could measure Tesla by free cash flow, P/E’s, and other typical measurements, but that wouldn’t make sense.

As an investor, I want a young  company like Tesla to be putting money toward growth. How do they sell more cars? How do they build their brand? I want to see Tesla’s capital expenditures increasing dramatically at this stage. And boy have they. In the past five years, capital expenditures have increased by 2,420%. As a result, its stock has increased over 290% over the past year.

The bottom line

Although I don’t expect Apple to purchase Tesla Motors Inc (NASDAQ:TSLA), it could be wildly successful if both companies agreed. I expect Tesla to stay independent, despite a growing relationship with Google Inc (NASDAQ:GOOG). If Google doesn’t buy it, Apple might be the next best match.

Currently, these companies offer something completely different to investors. Tesla is expensive, Apple Inc. (NASDAQ:AAPL) is cheap. Apple should become a very solid dividend stock, while Tesla’s growth has been phenomenal. Apple is very well established, Tesla is just gaining traction. I can’t tell you what is best for you, but these companies both offer something appealing for the right investor.

Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Apple and Tesla Motors (NASDAQ:TSLA) . The Motley Fool owns shares of Apple and Tesla Motors .

The article Tesla and Apple: One of a Kind? originally appeared on Fool.com.

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