Head-To-Head Comparison: Li Auto (NASDAQ:LI) and Kaixin (NASDAQ:KXIN)

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

Analyst Ratings

This is a summary of current ratings and target prices for Kaixin and Li Auto, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaixin	1	0	0	0	1.00
Li Auto	4	11	2	1	2.00

Li Auto has a consensus price target of $19.22, indicating a potential upside of 10.89%. Given Li Auto’s stronger consensus rating and higher possible upside, analysts clearly believe Li Auto is more favorable than Kaixin.

Institutional & Insider Ownership

2.0% of Kaixin shares are held by institutional investors. Comparatively, 9.9% of Li Auto shares are held by institutional investors. 20.8% of Kaixin shares are held by insiders. Comparatively, 48.5% of Li Auto shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Kaixin has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kaixin	N/A	N/A	N/A
Li Auto	0.99%	1.53%	0.70%

Valuation and Earnings

This table compares Kaixin 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
Kaixin	$31.53 million	0.04	-$40.97 million	N/A	N/A
Li Auto	$16.06 billion	N/A	$1.10 billion	$0.58	29.88

Li Auto has higher revenue and earnings than Kaixin.

Summary

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

About Kaixin

Kaixin Auto Holdings primarily engages in the sale of domestic and imported automobiles in the People's Republic of China. It focuses on automobiles brands, such as Audi, BMW, Mercedes-Benz, Land Rover, Bentley, Rolls-Royce, and Porsche. The company is headquartered in Beijing, the People's Republic of China.

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.