LiveWire Group (NYSE:LVWR – Get Free Report) and Li Auto (NASDAQ:LI – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares LiveWire Group and Li Auto’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LiveWire Group | -234.48% | -198.18% | -60.98% |
| Li Auto | -4.44% | -6.58% | -3.14% |
Risk & Volatility
LiveWire Group has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for LiveWire Group and Li Auto, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LiveWire Group | 1 | 0 | 0 | 0 | 1.00 |
| Li Auto | 2 | 11 | 0 | 0 | 1.85 |
Li Auto has a consensus target price of $16.28, indicating a potential upside of 43.45%. Given Li Auto’s stronger consensus rating and higher probable upside, analysts clearly believe Li Auto is more favorable than LiveWire Group.
Institutional & Insider Ownership
0.9% of LiveWire Group shares are held by institutional investors. Comparatively, 9.9% of Li Auto shares are held by institutional investors. 0.4% of LiveWire Group shares are held by insiders. Comparatively, 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 will outperform the market over the long term.
Earnings & Valuation
This table compares LiveWire Group and Li Auto”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LiveWire Group | $25.67 million | 13.41 | -$75.11 million | ($0.37) | -4.53 |
| Li Auto | $16.06 billion | 0.73 | $160.79 million | ($0.67) | -16.94 |
Li Auto has higher revenue and earnings than LiveWire Group. Li Auto is trading at a lower price-to-earnings ratio than LiveWire Group, indicating that it is currently the more affordable of the two stocks.
Summary
Li Auto beats LiveWire Group on 9 of the 13 factors compared between the two stocks.
About LiveWire Group
LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.
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.
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