Li Auto Inc (LI)vsPDD Holdings Inc. (PDD)
LI
Li Auto Inc
$11.81
+1.37%
CONSUMER CYCLICAL · Cap: $12.18B
PDD
PDD Holdings Inc.
$77.81
-0.04%
CONSUMER CYCLICAL · Cap: $117.02B
Smart Verdict
WallStSmart Research — data-driven comparison
PDD Holdings Inc. generates 330% more annual revenue ($450.78B vs $104.79B). PDD leads profitability with a 20.4% profit margin vs -4.4%. PDD appears more attractively valued with a PEG of 0.72. PDD earns a higher WallStSmart Score of 75/100 (B).
LI
Avoid33
out of 100
Grade: F
PDD
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.6%
Fair Value
$82.13
Current Price
$11.81
$70.32 discount
Margin of Safety
+69.8%
Fair Value
$353.87
Current Price
$77.81
$276.06 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Generating 25.7B in free cash flow
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
ROE of -7.0% — below average capital efficiency
Weak financial health signals
Earnings declined 11.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : LI
The strongest argument for LI centers on Price/Book.
Bull Case : PDD
The strongest argument for PDD centers on P/E Ratio, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 20.4% and operating margin at 24.7%. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bear Case : LI
The primary concerns for LI are Altman Z-Score, Piotroski F-Score, PEG Ratio.
Bear Case : PDD
The primary concerns for PDD are Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
LI profiles as a turnaround stock while PDD is a mature play — different risk/reward profiles.
LI carries more volatility with a beta of 0.54 — expect wider price swings.
PDD is growing revenue faster at 8.1% — sustainability is the question.
PDD generates stronger free cash flow (25.7B), providing more financial flexibility.
Bottom Line
PDD scores higher overall (75/100 vs 33/100), backed by strong 20.4% margins. LI offers better value entry with a 76.6% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
PDD Holdings Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · China
Pinduoduo Inc., operates an electronic commerce platform in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
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