Li Auto (NASDAQ:LI) and Porsche Automobil (OTCMKTS:POAHY) Critical Contrast

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

Insider and Institutional 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Porsche Automobil	N/A	N/A	N/A
Li Auto	3.60%	6.31%	2.87%

Valuation and Earnings

This table compares Porsche Automobil and Li Auto”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Porsche Automobil	N/A	N/A	-$21.66 billion	N/A	N/A
Li Auto	$19.79 billion	0.91	$1.10 billion	$0.58	29.67

Li Auto has higher revenue and earnings than Porsche Automobil.

Volatility & Risk

Porsche Automobil has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Porsche Automobil and Li Auto, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porsche Automobil	0	7	0	0	2.00
Li Auto	4	13	1	2	2.05

Li Auto has a consensus target price of $21.66, suggesting a potential upside of 25.88%. Given Li Auto’s stronger consensus rating and higher probable upside, analysts plainly believe Li Auto is more favorable than Porsche Automobil.

Summary

Li Auto beats Porsche Automobil on 11 of the 12 factors compared between the two stocks.

About Porsche Automobil

Porsche Automobil Holding SE, through its subsidiaries, operates as an automobile manufacturer worldwide. It operates in two segments, Core Investments and Portfolio Investments. The company is involved in investments in the areas of mobility and industrial technology. It offers its products under the Volkswagen, Audi, SEAT, KODA, Bentley, Lamborghini, and Porsche brand names. The company was formerly known as Dr. Ing. h.c. F. Porsche Aktiengesellschaft and changed its name to Porsche Automobil Holding SE in November 2007. Porsche Automobil Holding SE was founded in 2007 and is headquartered in Stuttgart, Germany.

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.