Reviewing Lucid Group (NASDAQ:LCID) and Li Auto (NASDAQ:LI)

Lucid Group (NASDAQ:LCID) and Li Auto (NASDAQ:LI) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Lucid Group and Li Auto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lucid Group N/A N/A N/A
Li Auto -3.89% -2.22% -1.68%

Institutional & Insider Ownership

1.1% of Lucid Group shares are owned by institutional investors. Comparatively, 16.4% of Li Auto shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Lucid Group and Li Auto’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lucid Group N/A N/A -$63.47 million N/A N/A
Li Auto $1.45 billion 17.05 -$23.24 million ($0.16) -170.69

Li Auto has higher revenue and earnings than Lucid Group.

Analyst Recommendations

This is a summary of current ratings and price targets for Lucid Group and Li Auto, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lucid Group 1 0 2 0 2.33
Li Auto 0 1 8 1 3.00

Lucid Group presently has a consensus price target of 23.33, indicating a potential downside of 6.48%. Li Auto has a consensus price target of $43.51, indicating a potential upside of 59.32%. Given Li Auto’s stronger consensus rating and higher possible upside, analysts clearly believe Li Auto is more favorable than Lucid Group.

Summary

Li Auto beats Lucid Group on 7 of the 10 factors compared between the two stocks.

About Lucid Group

Churchill Capital Corp IV was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

About Li Auto

Li Auto Inc., through its subsidiaries, designs, develops, manufactures, and sells smart electric sport utility vehicles (SUVs) in China. It offers Li ONE, a six-seat electric SUV that equipped with a range of extension system and smart vehicle solutions. 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, China.

Receive News & Ratings for Lucid Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lucid Group and related companies with MarketBeat.com's FREE daily email newsletter.