Li Auto (LI) Competitors

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

Does the MarketBeat Community favor LI or HMC?

Honda Motor received 330 more outperform votes than Li Auto when rated by MarketBeat users. Likewise, 61.61% of users gave Honda Motor an outperform vote while only 56.67% of users gave Li Auto an outperform vote.

Company	Underperform	Outperform
Li Auto	Outperform Votes 68 56.67%	Underperform Votes 52 43.33%
Honda Motor	Outperform Votes 398 61.61%	Underperform Votes 248 38.39%

Do analysts rate LI or HMC?

Li Auto currently has a consensus price target of $35.73, suggesting a potential upside of 49.81%. Given Li Auto's stronger consensus rating and higher probable upside, equities analysts plainly believe Li Auto is more favorable than Honda Motor.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	1 Sell rating(s)	4 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.33
Honda Motor	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Do insiders and institutionals hold more shares of LI or HMC?

9.9% of Li Auto shares are owned by institutional investors. Comparatively, 5.3% of Honda Motor shares are owned by institutional investors. 48.5% of Li Auto shares are owned by insiders. Comparatively, 0.0% of Honda Motor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Does the media refer more to LI or HMC?

In the previous week, Li Auto had 16 more articles in the media than Honda Motor. MarketBeat recorded 22 mentions for Li Auto and 6 mentions for Honda Motor. Li Auto's average media sentiment score of 0.75 beat Honda Motor's score of 0.32 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	9 Very Positive mention(s)	1 Positive mention(s)	8 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Honda Motor	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Neutral

Is LI or HMC more profitable?

Li Auto has a net margin of 7.20% compared to Honda Motor's net margin of 4.76%. Li Auto's return on equity of 13.03% beat Honda Motor's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Li Auto	7.20%	13.03%	5.55%
Honda Motor	4.76%	7.81%	3.38%

Which has more volatility & risk, LI or HMC?

Li Auto has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Honda Motor has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Which has better earnings and valuation, LI or HMC?

Honda Motor has higher revenue and earnings than Li Auto. Honda Motor is trading at a lower price-to-earnings ratio than Li Auto, 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	$144.46B	0.17	$1.65B	$1.05	22.71
Honda Motor	$21.76T	0.00	$7.64B	$4.30	6.55

Summary

Li Auto beats Honda Motor on 13 of the 18 factors compared between the two stocks.