Head-To-Head Analysis: Li Auto (NASDAQ:LI) vs. NWTN (NASDAQ:NWTN)

Li Auto (NASDAQ:LI – Get Rating) and NWTN (NASDAQ:NWTN – Get Rating) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares Li Auto and NWTN’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Auto	$45.29 billion	0.67	-$291.74 million	($0.30)	-97.55
NWTN	N/A	N/A	-$4.89 million	N/A	N/A

NWTN has lower revenue, but higher earnings than Li Auto.

Insider & Institutional Ownership

21.0% of Li Auto shares are held by institutional investors. Comparatively, 25.0% of NWTN shares are held by institutional investors. 48.5% of Li Auto shares are held by company insiders. Comparatively, 46.1% of NWTN shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Li Auto and NWTN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	0	0	6	0	3.00
NWTN	0	0	0	0	N/A

Li Auto presently has a consensus target price of $35.74, suggesting a potential upside of 22.12%. Given Li Auto’s higher probable upside, research analysts clearly believe Li Auto is more favorable than NWTN.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Li Auto	-4.30%	-4.48%	-2.56%
NWTN	N/A	N/A	N/A

Summary

NWTN beats Li Auto on 5 of the 9 factors compared between the two stocks.

About Li Auto

(Get Rating)

Li Auto Inc., through its subsidiaries, designs, develops, manufactures, and sells new energy vehicles in the People's Republic of China. The company provides Li ONE, a six-seat smart electric sport utility vehicle that is equipped with smart vehicle solutions, navigation on ADAS, and automatic emergency breaking functionalities. It also offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment. 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, China.

About NWTN

(Get Rating)

ICONIQ Holding Limited operates as a green mobility technology company which defines the smart passenger vehicle ("SPV") as a vehicle concept emphasizing AI technologies, autonomous driving, IoT connectivity, and a personalized passenger experience. The company's core technology advantages are characterized by modular pure electric platforms, digital on-board connectivity systems, continuously upgraded electric and electronic architectures, and autonomous driving technology. The company focuses on consumers and technology-savvy families and businesses. The company was founded in 2016 and is based in Dubai, United Arab Emirates with additional offices in Tianjin and Shanghai.