Head-To-Head Contrast: Hino Motors (OTCMKTS:HINOY) and Li Auto (NASDAQ:LI)

Hino Motors (OTCMKTS:HINOY) and Li Auto (NASDAQ:LI) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hino Motors	4.99%	16.47%	3.17%
Li Auto	3.60%	6.31%	2.87%

Risk & Volatility

Hino Motors has a beta of -0.23, meaning that its stock price is 123% less volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hino Motors and Li Auto, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hino Motors	0	0	0	0	0.00
Li Auto	4	12	1	1	1.94

Li Auto has a consensus price target of $19.59, indicating a potential upside of 3.71%. Given Li Auto’s stronger consensus rating and higher possible upside, analysts plainly believe Li Auto is more favorable than Hino Motors.

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

Earnings & Valuation

This table compares Hino Motors and Li Auto”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hino Motors	$11.15 billion	N/A	-$1.44 billion	$9.04	3.07
Li Auto	$19.79 billion	N/A	$1.10 billion	$0.58	32.57

Li Auto has higher revenue and earnings than Hino Motors. Hino Motors 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 Hino Motors on 10 of the 14 factors compared between the two stocks.

About Hino Motors

Hino Motors, Ltd. manufactures and sells large commercial vehicles under the Hino brand worldwide. It offers trucks and buses; and light commercial vehicles and passenger vehicles, as well as various engines, service parts, etc. The company was founded in 1910 and is headquartered in Hino, Japan. Hino Motors, Ltd. operates as a subsidiary of Toyota Motor Corporation.

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.