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 superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, media sentiment, valuation and risk.

Which has more risk and volatility, HMC or LI?

Honda Motor has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Which has better 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	$21.69T	0.00	$5.52B	$3.49	8.60
Li Auto	$19.79B	1.68	$1.10B	$1.05	30.29

Do analysts recommend HMC or LI?

Li Auto has a consensus target price of $32.85, indicating a potential upside of 3.30%. Given Li Auto's stronger consensus rating and higher possible upside, analysts clearly 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	0 Sell rating(s)	5 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.38

Is HMC or LI more profitable?

Li Auto has a net margin of 5.60% compared to Honda Motor's net margin of 3.82%. 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	3.82%	6.33%	2.70%
Li Auto	5.60%	11.83%	5.19%

Does the media favor HMC or LI?

In the previous week, Honda Motor had 7 more articles in the media than Li Auto. MarketBeat recorded 13 mentions for Honda Motor and 6 mentions for Li Auto. Li Auto's average media sentiment score of 0.70 beat Honda Motor's score of 0.40 indicating that Li Auto is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Honda Motor	4 Very Positive mention(s)	0 Positive mention(s)	6 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral
Li Auto	3 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders believe in HMC or LI?

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

Summary

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