Li Auto (LI) Competitors

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

Is HMC or LI more profitable?

Li Auto has a net margin of 5.60% compared to Honda Motor's net margin of 2.95%. Li Auto's return on equity of 11.83% beat Honda Motor's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Honda Motor	2.95%	5.03%	2.10%
Li Auto	5.60%	11.83%	5.19%

Do analysts prefer HMC or LI?

Li Auto has a consensus price target of $28.64, indicating a potential upside of 20.22%. Given Li Auto's higher probable upside, analysts plainly believe Li Auto is more favorable than Honda Motor.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	0 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
Li Auto	2 Sell rating(s)	7 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.00

Which has stronger valuation and earnings, HMC or LI?

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
Honda Motor	$21.62T	0.00	$5.52B	$2.89	11.77
Li Auto	$19.79B	1.26	$1.10B	$1.05	22.69

Does the media favor HMC or LI?

In the previous week, Honda Motor and Honda Motor both had 9 articles in the media. Honda Motor's average media sentiment score of 1.40 beat Li Auto's score of 0.60 indicating that Honda Motor is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Honda Motor	8 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Li Auto	2 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders have more ownership in HMC or LI?

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

Which has more volatility and risk, HMC or LI?

Honda Motor has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Summary

Li Auto beats Honda Motor on 10 of the 14 factors compared between the two stocks.