Comparing Some Market Caps of New School vs Old School Companies

by Evan

I was talking to a buddy of mine in my investment club about the decision whether to sell one of our holdings.  While the content of the discussion (another growth vs. value discussion) was interesting unto itself, there was something that came out of it that caught my immediate attention – market cap of “new school” or disruptor companies versus established companies.

What is Market Capitalization?

Investopedia provides a pretty straightforward definition of Market Capitalization,

The total dollar market value of all of a company’s outstanding shares. Market capitalization is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to sales or total asset figures.

So if a company has a 100 shares that are outstanding, and they are worth $10 a share then the company’s market capitalization is 100*$10 or $1,000.

Comparing Market Capitalization of Disruptor Companies versus Old School Companies

Telsa VS. Other Car Companies

This is actually the stock we were talking about.

TSLA Market Cap – $34.72 Billion

GM Market Cap – $49.28 Billion

Ford Market Cap – $58.40 Billion

Sort of feels like the spread between Tesla and those other companies (with actual profits) should be larger?

Amazon VS. Other Retailers

Amazon Market Cap – $224.93 Billion

Walmart Market Cap – $236.36 Billion

Target Market Cap – $54.07 Billions

This one is really shocking one for me! How is Walmart only 5% more valuable than Amazon?  and wow is Target much smaller than I expected!

Solar City vs Con Ed

Solar City Market Cap – $5.05 Billion

Con Ed Market Cap – $17.95 Billion

Con Ed has a profit margin of 10.23% while SCTY has a -217% profit margin!

 

I am sure there are a thousand other examples out there!

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