Li Auto (LI) Competitors

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

Do analysts rate LI or RACE?

Li Auto presently has a consensus price target of $32.85, suggesting a potential upside of 32.43%. Ferrari has a consensus price target of $526.25, suggesting a potential upside of 17.41%. Given Li Auto's higher probable upside, research analysts clearly 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)	5 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.38
Ferrari	0 Sell rating(s)	1 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.88

Is LI or RACE more profitable?

Ferrari has a net margin of 22.95% compared to Li Auto's net margin of 5.60%. Ferrari's return on equity of 45.41% beat Li Auto's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Li Auto	5.60%	11.83%	5.19%
Ferrari	22.95%	45.41%	16.72%

Does the media prefer LI or RACE?

In the previous week, Ferrari had 31 more articles in the media than Li Auto. MarketBeat recorded 42 mentions for Ferrari and 11 mentions for Li Auto. Ferrari's average media sentiment score of 0.34 beat Li Auto's score of 0.05 indicating that Ferrari is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Li Auto	2 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Neutral
Ferrari	16 Very Positive mention(s)	4 Positive mention(s)	11 Neutral mention(s)	8 Negative mention(s)	2 Very Negative mention(s)	Neutral

Which has better earnings and valuation, LI or RACE?

Ferrari has lower revenue, but higher earnings than Li Auto. 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	$19.79B	1.31	$1.10B	$1.05	23.62
Ferrari	$7.23B	15.03	$1.65B	$9.69	46.26

Do institutionals & insiders believe 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Which has more risk and volatility, LI or RACE?

Li Auto has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Ferrari has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Summary

Ferrari beats Li Auto on 12 of the 16 factors compared between the two stocks.