Li Auto (NASDAQ:LI – Get Free Report) and VinFast Auto (NASDAQ:VFS – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
9.9% of Li Auto shares are owned by institutional investors. 48.5% of Li Auto shares are owned by insiders. Comparatively, 16.2% of VinFast Auto shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations for Li Auto and VinFast Auto, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Li Auto | 0 | 1 | 6 | 0 | 2.86 |
| VinFast Auto | 0 | 0 | 4 | 0 | 3.00 |
Li Auto currently has a consensus target price of $40.08, indicating a potential upside of 124.18%. VinFast Auto has a consensus target price of $9.75, indicating a potential upside of 126.74%. Given VinFast Auto’s stronger consensus rating and higher probable upside, analysts plainly believe VinFast Auto is more favorable than Li Auto.
Profitability
This table compares Li Auto and VinFast Auto’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Li Auto | 8.73% | 16.65% | 7.27% |
| VinFast Auto | N/A | N/A | -44.67% |
Risk and Volatility
Li Auto has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, VinFast Auto has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Valuation & Earnings
This table compares Li Auto and VinFast Auto’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 | $17.44 billion | 1.09 | $1.65 billion | $1.50 | 11.92 |
| VinFast Auto | $1.20 billion | N/A | -$2.40 billion | ($0.82) | -5.24 |
Li Auto has higher revenue and earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Li Auto, indicating that it is currently the more affordable of the two stocks.
Summary
Li Auto beats VinFast Auto on 11 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 VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
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