Financial Review: Li Auto (NASDAQ:LI) and GreenPower Motor (NASDAQ:GP)

Li Auto (NASDAQ:LI) and GreenPower Motor (NASDAQ:GP) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Li Auto and GreenPower Motor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	3	9	1	2	2.13
GreenPower Motor	1	0	0	0	1.00

Li Auto presently has a consensus price target of $25.79, suggesting a potential upside of 11.48%. Given Li Auto’s stronger consensus rating and higher possible upside, equities analysts plainly believe Li Auto is more favorable than GreenPower Motor.

Volatility & Risk

Li Auto has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 2.94, meaning that its share price is 194% more volatile than the S&P 500.

Institutional and Insider Ownership

9.9% of Li Auto shares are owned by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are owned by institutional investors. 48.5% of Li Auto shares are owned by insiders. Comparatively, 28.1% of GreenPower Motor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Li Auto and GreenPower Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Li Auto	5.64%	11.37%	5.05%
GreenPower Motor	-94.78%	-561.91%	-48.06%

Earnings & Valuation

This table compares Li Auto and GreenPower Motor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Auto	$19.79 billion	1.22	$1.10 billion	$1.05	22.03
GreenPower Motor	$19.85 million	0.46	-$18.66 million	($6.20)	-0.48

Li Auto has higher revenue and earnings than GreenPower Motor. GreenPower 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.

Summary

Li Auto beats GreenPower Motor on 14 of the 15 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 GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.