Li Auto (NASDAQ:LI – Get Free Report) and BYD (OTCMKTS:BYDDY – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Earnings and Valuation
This table compares Li Auto and BYD”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Li Auto | $16.06 billion | 0.72 | $160.79 million | ($0.67) | -17.46 |
| BYD | $111.84 billion | 0.81 | $4.54 billion | $0.57 | 17.75 |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Li Auto and BYD, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Li Auto | 3 | 10 | 0 | 0 | 1.77 |
| BYD | 0 | 1 | 0 | 0 | 2.00 |
Li Auto currently has a consensus price target of $16.28, suggesting a potential upside of 39.16%. Given Li Auto’s higher possible upside, research analysts plainly believe Li Auto is more favorable than BYD.
Risk & Volatility
Li Auto has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, BYD has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.
Profitability
This table compares Li Auto and BYD’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Li Auto | -4.44% | -6.58% | -3.14% |
| BYD | N/A | N/A | N/A |
Institutional and Insider Ownership
9.9% of Li Auto shares are owned by institutional investors. Comparatively, 0.0% of BYD shares are owned by institutional investors. 48.5% of Li Auto shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
BYD beats Li Auto on 9 of the 13 factors compared between the two stocks.
About Li Auto
Li Auto Inc. operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment. The company offers its products through online and offline channels. The company was formerly known as Leading Ideal Inc. and changed its name to Li Auto Inc. in July 2020. Li Auto Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.
About BYD
BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.
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