Li Auto (LI) Competitors

Li Auto (NASDAQ:LI) and Ferrari (NYSE:RACE) are both large-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their community ranking, valuation, analyst recommendations, media sentiment, earnings, risk, dividends, profitability and institutional ownership.

Does the MarketBeat Community believe in LI or RACE?

Ferrari received 492 more outperform votes than Li Auto when rated by MarketBeat users. Likewise, 67.15% of users gave Ferrari an outperform vote while only 57.89% of users gave Li Auto an outperform vote.

Company	Underperform	Outperform
Li Auto	Outperform Votes 66 57.89%	Underperform Votes 48 42.11%
Ferrari	Outperform Votes 558 67.15%	Underperform Votes 273 32.85%

Which has higher valuation & earnings, LI or RACE?

Li Auto has higher revenue and earnings than Ferrari. Li Auto is trading at a lower price-to-earnings ratio than Ferrari, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Auto	$17.44B	1.37	$1.65B	$1.35	16.73
Ferrari	$6.46B	12.47	$1.36B	$8.61	50.66

Which has more volatility and risk, LI or RACE?

Li Auto has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Ferrari has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Does the media favor LI or RACE?

In the previous week, Ferrari had 31 more articles in the media than Li Auto. MarketBeat recorded 32 mentions for Ferrari and 1 mentions for Li Auto. Li Auto's average media sentiment score of 0.67 beat Ferrari's score of 0.14 indicating that Li Auto is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Li Auto	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ferrari	6 Very Positive mention(s)	6 Positive mention(s)	14 Neutral mention(s)	3 Negative mention(s)	3 Very Negative mention(s)	Neutral

Do analysts rate LI or RACE?

Li Auto currently has a consensus target price of $33.94, suggesting a potential upside of 50.26%. Ferrari has a consensus target price of $507.14, suggesting a potential upside of 16.27%. Given Li Auto's higher probable upside, equities analysts plainly believe Li Auto is more favorable than Ferrari.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	0 Sell rating(s)	4 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.43
Ferrari	1 Sell rating(s)	1 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.67

Do insiders & institutionals have more ownership in LI or RACE?

9.9% of Li Auto shares are held by institutional investors. 48.5% of Li Auto shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Is LI or RACE more profitable?

Ferrari has a net margin of 22.16% compared to Li Auto's net margin of 7.20%. Ferrari's return on equity of 44.67% beat Li Auto's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Li Auto	7.20%	13.03%	5.55%
Ferrari	22.16%	44.67%	16.54%

Summary

Ferrari beats Li Auto on 12 of the 18 factors compared between the two stocks.