Li Auto Inc (LI)vsFerrari NV (RACE)
LI
Li Auto Inc
$18.08
+1.86%
CONSUMER CYCLICAL · Cap: $18.19B
RACE
Ferrari NV
$322.17
+0.05%
CONSUMER CYCLICAL · Cap: $57.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Li Auto Inc generates 1472% more annual revenue ($112.31B vs $7.15B). RACE leads profitability with a 22.4% profit margin vs 1.0%. LI appears more attractively valued with a PEG of 0.93. RACE earns a higher WallStSmart Score of 48/100 (D+).
LI
Hold44
out of 100
Grade: D
RACE
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1661.5%
Fair Value
$1.09
Current Price
$18.08
$16.99 premium
Margin of Safety
-443.1%
Fair Value
$70.52
Current Price
$322.17
$251.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 43 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Generating 1.4B in free cash flow
Areas to Watch
ROE of 1.6% — below average capital efficiency
1.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 12.6x book value
3.8% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : LI
The strongest argument for LI centers on PEG Ratio, Price/Book. PEG of 0.93 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 22.4% and operating margin at 28.6%.
Bear Case : LI
The primary concerns for LI are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 110.9x leaves little room for execution misses. Thin 1.0% margins leave little buffer for downturns.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
LI carries more volatility with a beta of 0.60 — expect wider price swings.
RACE is growing revenue faster at 3.8% — sustainability is the question.
RACE generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor AUTO MANUFACTURERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RACE scores higher overall (48/100 vs 44/100), backed by strong 22.4% margins. Both earn "Hold" 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.
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