Kaixin (NASDAQ:KXIN) vs. Li Auto (NASDAQ:LI) Critical Comparison

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

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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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%	1.52%	0.70%

Volatility and Risk

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

Earnings and Valuation

This table compares Kaixin 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
Kaixin	$31.53 million	0.00	-$40.97 million	N/A	N/A
Li Auto	$16.06 billion	N/A	$160.79 million	$0.13	131.15

Li Auto has higher revenue and earnings than Kaixin.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Kaixin and Li Auto, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaixin	1	0	0	0	1.00
Li Auto	4	11	1	1	1.94

Li Auto has a consensus target price of $18.55, suggesting a potential upside of 8.80%. Given Li Auto’s stronger consensus rating and higher possible upside, analysts clearly believe Li Auto is more favorable 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.