Suzuki Motor (OTCMKTS:SZKMY) vs. Li Auto (NASDAQ:LI) Head to Head Review

Li Auto (NASDAQ:LI) and Suzuki Motor (OTCMKTS:SZKMY) are both large-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Li Auto and Suzuki Motor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	4	13	1	2	2.05
Suzuki Motor	0	1	0	1	3.00

Li Auto currently has a consensus price target of $21.66, suggesting a potential upside of 27.92%. Given Li Auto’s higher probable upside, analysts plainly believe Li Auto is more favorable than Suzuki Motor.

Earnings & Valuation

This table compares Li Auto and Suzuki Motor”s top-line revenue, earnings per share and 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	29.20
Suzuki Motor	$38.25 billion	0.75	$2.75 billion	$5.44	10.80

Suzuki Motor has higher revenue and earnings than Li Auto. Suzuki Motor is trading at a lower price-to-earnings ratio than Li Auto, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Li Auto has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Suzuki Motor has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Institutional and Insider Ownership

9.9% of Li Auto shares are held by institutional investors. Comparatively, 0.0% of Suzuki Motor shares are held by institutional investors. 48.5% of Li Auto shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Li Auto and Suzuki Motor’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%
Suzuki Motor	6.71%	10.44%	6.47%

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 Suzuki Motor

Suzuki Motor Corporation engages in the manufacturing and marketing of automobiles, motorcycles, and marine products in Japan, rest of Asia, Europe, North America, and internationally. It offers mini-vehicles, sub-compact vehicles, standard-sized vehicles, outboard motors, motorized wheelchairs, and electro senior vehicles. The company is also involved in solar power generation and logistics business, as well as provides other services. Suzuki Motor Corporation was founded in 1909 and is headquartered in Hamamatsu, Japan.