WallStSmart

General Motors Company (GM)vsLi Auto Inc (LI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Motors Company generates 69% more annual revenue ($184.62B vs $109.37B). GM leads profitability with a 1.4% profit margin vs -1.7%. GM appears more attractively valued with a PEG of 0.37. GM earns a higher WallStSmart Score of 52/100 (C-).

GM

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 4.5Value: 6.0Quality: 3.5
Piotroski: 3/9Altman Z: 1.19

LI

Hold

41

out of 100

Grade: D

Growth: 4.7Profit: 2.0Value: 7.7Quality: 6.3
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GMSignificantly Overvalued (-30.9%)

Margin of Safety

-30.9%

Fair Value

$62.72

Current Price

$83.22

$20.50 premium

UndervaluedFair: $62.72Overvalued
LIUndervalued (+78.3%)

Margin of Safety

+78.3%

Fair Value

$88.38

Current Price

$14.20

$74.18 discount

UndervaluedFair: $88.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GM4 strengths · Avg: 9.3/10
PEG RatioValuation
0.3710/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Market CapQuality
$73.69B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.44B8/10

Generating 1.4B in free cash flow

LI3 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Areas to Watch

GM4 concerns · Avg: 3.3/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Return on EquityProfitability
4.0%3/10

ROE of 4.0% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

LI4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-2.6%2/10

ROE of -2.6% — below average capital efficiency

Revenue GrowthGrowth
-11.4%2/10

Revenue declined 11.4%

EPS GrowthGrowth
-99.8%2/10

Earnings declined 99.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : GM

The strongest argument for GM centers on PEG Ratio, Price/Book, Market Cap. PEG of 0.37 suggests the stock is reasonably priced for its growth.

Bull Case : LI

The strongest argument for LI centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bear Case : GM

The primary concerns for GM are P/E Ratio, Return on Equity, Profit Margin. Debt-to-equity of 2.04 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.

Bear Case : LI

The primary concerns for LI are Piotroski F-Score, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

GM profiles as a value stock while LI is a turnaround play — different risk/reward profiles.

GM carries more volatility with a beta of 1.29 — expect wider price swings.

GM is growing revenue faster at -0.9% — sustainability is the question.

GM generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

GM scores higher overall (52/100 vs 41/100). LI offers better value entry with a 78.3% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

General Motors Company

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

General Motors Company (GM) is an American multinational corporation headquartered in Detroit, Michigan that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services, with global headquarters in Detroit's Renaissance Center.

Li Auto Inc

CONSUMER CYCLICAL · AUTO MANUFACTURERS · China

Li Auto Inc. designs, develops, manufactures and sells smart electric sport utility vehicles (SUVs) in China. The company is headquartered in Beijing, China.

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