Li Auto (NASDAQ:LI – Get Free Report) and Kaixin (NASDAQ:KXIN – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Risk and Volatility
Li Auto has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Kaixin has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Insider & Institutional Ownership
9.9% of Li Auto shares are owned by institutional investors. Comparatively, 2.0% of Kaixin shares are owned by institutional investors. 48.5% of Li Auto shares are owned by company insiders. Comparatively, 20.8% of Kaixin shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Li Auto | $19.79 billion | N/A | $1.10 billion | $0.58 | 29.59 |
| Kaixin | $31.53 million | 0.00 | -$40.97 million | N/A | N/A |
Li Auto has higher revenue and earnings than Kaixin.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Li Auto and Kaixin, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Li Auto | 4 | 12 | 1 | 1 | 1.94 |
| Kaixin | 1 | 0 | 0 | 0 | 1.00 |
Li Auto presently has a consensus target price of $19.59, indicating a potential upside of 14.17%. Given Li Auto’s stronger consensus rating and higher possible upside, analysts plainly believe Li Auto is more favorable than Kaixin.
Profitability
This table compares Li Auto and Kaixin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Li Auto | 3.60% | 6.31% | 2.87% |
| Kaixin | N/A | N/A | N/A |
Summary
Li Auto beats Kaixin on 11 of the 12 factors compared between the two stocks.
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.
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.
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