Li Auto Inc (LI)vsFerrari NV (RACE)
LI
Li Auto Inc
$14.20
-2.54%
CONSUMER CYCLICAL · Cap: $14.42B
RACE
Ferrari NV
$346.99
-2.93%
CONSUMER CYCLICAL · Cap: $62.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Li Auto Inc generates 1418% more annual revenue ($109.37B vs $7.20B). RACE leads profitability with a 22.2% profit margin vs -1.7%. LI appears more attractively valued with a PEG of 0.83. RACE earns a higher WallStSmart Score of 50/100 (C-).
LI
Hold41
out of 100
Grade: D
RACE
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+78.3%
Fair Value
$88.38
Current Price
$14.20
$74.18 discount
Margin of Safety
-44.3%
Fair Value
$243.71
Current Price
$346.99
$103.28 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Every $100 of equity generates 39 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.5%
Areas to Watch
Weak financial health signals
ROE of -2.6% — below average capital efficiency
Revenue declined 11.4%
Earnings declined 99.8%
Premium valuation, high expectations priced in
Trading at 13.0x book value
3.2% revenue growth
1.3% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 29.5%.
Bear Case : LI
The primary concerns for LI are Piotroski F-Score, Return on Equity, Revenue Growth.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
LI profiles as a turnaround stock while RACE is a value play — different risk/reward profiles.
RACE carries more volatility with a beta of 0.59 — expect wider price swings.
RACE is growing revenue faster at 3.2% — sustainability is the question.
LI generates stronger free cash flow (951M), providing more financial flexibility.
Bottom Line
RACE scores higher overall (50/100 vs 41/100), backed by strong 22.2% margins. 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.
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.
Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
Compare with Other AUTO MANUFACTURERS Stocks
Want to dig deeper into these stocks?