Reviewing ZEEKR Intelligent Technology (NYSE:ZK) and Li Auto (NASDAQ:LI)

Li Auto (NASDAQ:LI) and ZEEKR Intelligent Technology (NYSE:ZK) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Li Auto and ZEEKR Intelligent Technology’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%
ZEEKR Intelligent Technology	-3.69%	N/A	-7.10%

Volatility and Risk

Li Auto has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, ZEEKR Intelligent Technology has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Institutional & Insider Ownership

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.

Valuation and Earnings

This table compares Li Auto and ZEEKR Intelligent Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Auto	$19.79 billion	1.10	$1.10 billion	$1.05	19.86
ZEEKR Intelligent Technology	$10.40 billion	0.70	-$880.03 million	($1.81)	-15.74

Li Auto has higher revenue and earnings than ZEEKR Intelligent Technology. ZEEKR Intelligent Technology is trading at a lower price-to-earnings ratio than Li Auto, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Li Auto and ZEEKR Intelligent Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	3	9	1	2	2.13
ZEEKR Intelligent Technology	1	0	1	0	2.00

Li Auto currently has a consensus price target of $25.79, suggesting a potential upside of 23.67%. ZEEKR Intelligent Technology has a consensus price target of $38.00, suggesting a potential upside of 33.38%. Given ZEEKR Intelligent Technology’s higher possible upside, analysts clearly believe ZEEKR Intelligent Technology is more favorable than Li Auto.

Summary

Li Auto beats ZEEKR Intelligent Technology on 13 of the 14 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 ZEEKR Intelligent Technology

ZEEKR Intelligent Technology Holding Limited, an investment holding company, engages in the research and development, production, commercialization, and sale of the electric vehicles and batteries. It offers battery electric passenger vehicles (BEVs) and SUVs. The company also produces and sells electric powertrain and battery packs for electric vehicles, such as motors and electric control systems; and provides automotive related research and development services. It operates in China, Europe, and internationally. The company was founded in 2017 and is based in Ningbo, China. ZEEKR Intelligent Technology Holding Limited operates as a subsidiary of Geely Automobile Holdings Limited.