Li Auto (NASDAQ:LI – Get Free Report) and Kaixin (NASDAQ:KXIN – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
9.9% of Li Auto shares are held by institutional investors. Comparatively, 2.0% of Kaixin shares are held by institutional investors. 48.5% of Li Auto shares are held by insiders. Comparatively, 20.8% of Kaixin shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Li Auto and Kaixin, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Li Auto | 4 | 11 | 1 | 1 | 1.94 |
| Kaixin | 1 | 0 | 0 | 0 | 1.00 |
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 | 0.99% | 1.52% | 0.70% |
| Kaixin | N/A | N/A | N/A |
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.
Valuation & Earnings
This table compares Li Auto and Kaixin”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Li Auto | $16.06 billion | 1.15 | $160.79 million | $0.13 | 134.31 |
| Kaixin | $31.53 million | 0.00 | -$40.97 million | N/A | N/A |
Li Auto has higher revenue and earnings than Kaixin.
Summary
Li Auto beats Kaixin on 12 of the 13 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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