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

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

Valuation & Earnings

This table compares Porsche Automobil and Li Auto”s 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	0.90	$1.10 billion	$0.58	29.45

Li Auto has higher revenue and earnings than Porsche Automobil.

Volatility and Risk

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Porsche Automobil and Li Auto, as provided by MarketBeat.com.

	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 price target of $21.66, suggesting a potential upside of 26.84%. Given Li Auto’s stronger consensus rating and higher probable upside, analysts plainly believe Li Auto is more favorable than Porsche Automobil.

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%

Insider and Institutional Ownership

9.9% of Li Auto shares are owned by institutional investors. 48.5% of Li Auto shares are owned 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.

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.