NIO (NIO) Competitors

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

Do insiders and institutionals believe in LI or NIO?

9.9% of Li Auto shares are held by institutional investors. Comparatively, 48.6% of NIO shares are held by institutional investors. 48.5% of Li Auto shares are held by company insiders. Comparatively, 1.0% of NIO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Do analysts prefer LI or NIO?

Li Auto presently has a consensus target price of $32.85, indicating a potential upside of 30.15%. NIO has a consensus target price of $4.74, indicating a potential downside of 5.33%. Given Li Auto's stronger consensus rating and higher probable upside, analysts clearly believe Li Auto is more favorable than NIO.

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
NIO	1 Sell rating(s)	9 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.23

Which has more volatility and risk, LI or NIO?

Li Auto has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, NIO has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Is LI or NIO more profitable?

Li Auto has a net margin of 5.60% compared to NIO's net margin of -35.51%. Li Auto's return on equity of 11.83% beat NIO's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Li Auto	5.60%	11.83%	5.19%
NIO	-35.51%	-286.45%	-23.51%

Which has preferable earnings & valuation, LI or NIO?

Li Auto has higher revenue and earnings than NIO. NIO 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
Li Auto	$19.79B	1.34	$1.10B	$1.05	24.04
NIO	$9.01B	1.16	-$3.06B	-$1.62	-3.09

Does the media favor LI or NIO?

In the previous week, NIO had 15 more articles in the media than Li Auto. MarketBeat recorded 24 mentions for NIO and 9 mentions for Li Auto. Li Auto's average media sentiment score of 0.74 beat NIO's score of 0.35 indicating that Li Auto is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Li Auto	4 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
NIO	7 Very Positive mention(s)	2 Positive mention(s)	13 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Neutral

Summary

Li Auto beats NIO on 13 of the 17 factors compared between the two stocks.