May. 06, 2024
Automobiles & Motorcycles
Sifting through countless of stocks in the Auto & Truck Manufacturers industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you're on the fence about investing in Li Auto Inc (ADR) or Nio Inc - ADR because you're not sure how they measure up, it's important to compare them on a few factors before making your decision.
Read on to learn how Li Auto Inc (ADR) and Nio Inc - ADR compare based on key financial metrics to determine which better meets your investment needs.
Li Auto Inc specializes in designing, developing, manufacturing, and selling intelligent electric vehicles. Some of its popular models include the Li MEGA high-voltage battery electric vehicle, the Li L9 six-seat flagship family SUV, and the Li L7 five-seat flagship family SUV. Additionally, the company offers a range of value-added services such as paid regular servicing, unlimited high-speed data plans, charging stall installations, and vehicle internet connection services.
NIO Inc, a China-based holding company, focuses on the research, development, and manufacturing of premium smart electric vehicles. Its product lineup includes the ES8, ES6, EC6, and ET7, which utilize advanced battery swapping and autonomous driving technologies. NIO's electric vehicles feature cutting-edge systems like the NAD (NIO Autonomous Driving) technology with the NIO Adam computing platform and NIO Aquila sensing system. The company primarily operates in the domestic market and offers services such as charging piles, vehicle internet connection, and extended warranties.
By May 3, 2024, Li Auto Inc (ADR) had amassed a market capitalization of $29.2 billion, contrasting sharply with the Auto & Truck Manufacturers median of $215.3 million. Li Auto Inc (ADR) saw its stock soar 23.13% over the past year.
Currently, Li Auto Inc (ADR) boasts a price-earnings ratio of 18.3. The trailing 12-month revenue stands at $17.1 billion with a 9.5% net profit margin. Recent quarterly sales growth showed an impressive 136.4% year-over-year increase. Analysts forecast the adjusted earnings per share for the current fiscal year to be $12.544. Notably, Li Auto Inc (ADR) does not distribute dividends.
On the other hand, Nio Inc - ADR doesn't have a price-earnings ratio at present. The company's trailing 12-month revenue amounts to $7.7 billion, though it grapples with a -38.0% net profit margin. Its quarterly sales growth has shown a modest 6.5% year-over-year increase. Analyst projections anticipate adjusted earnings per share to be $-7.873 for this fiscal year. Similar to Li Auto Inc, Nio Inc does not offer dividend payouts.
Determining the right stock often requires parsing through extensive data. AAII's A+ Investor tool simplifies this task by providing actionable, customizable data. The service offers intuitive A-F grades for key investing factors: value, growth, momentum, earnings estimate revisions, and quality. Let's delve into the stock grades of Li Auto Inc (ADR) and Nio Inc (ADR) to see how they fare.
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Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.
AAII’s A+ Investor Value Grade is derived from a stock's value score, which is the percentile rank of the average of various financial ratios like price-to-sales and price-earnings ratios. A Value Score of 81-100 represents deep value, while 61-80 is considered good value.
Li Auto Inc (ADR) holds a Value Score of 39, classifying it as Expensive. Similarly, Nio Inc (ADR) has a Value Score of 31, also falling into the Expensive category.
Neither Li Auto Inc (ADR) nor Nio Inc (ADR) has a high enough value grade to emerge as a clear winner in terms of valuation. Prospective investors should perform additional due diligence to determine if either stock fits well in their portfolios, considering the expensiveness of these shares.
Similar to Value Grades, AAII’s A+ Investor Quality Grade evaluates a stock based on key metrics like return on assets, return on invested capital, and gross profit relative to assets.
Li Auto Inc (ADR) scores a Quality Grade of 68, indicating a strong quality, while Nio Inc (ADR) lags significantly with a Quality Grade of 10, indicating very weak quality.
Li Auto Inc (ADR) boasts a superior quality grade compared to Nio Inc (ADR). Investors focusing on the quality might find Li Auto Inc (ADR) to be a more promising option, but a thorough analysis of varied financial metrics is advisable before making investment decisions.
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Momentum grades reveal stocks that demonstrate high rates of return. Research finds that stocks with high momentum often continue to outperform.
Li Auto Inc (ADR) has a Momentum Score of 72, signifying strong momentum. Conversely, Nio Inc (ADR) scores 48, which indicates average momentum.
For those eyeing companies with higher momentum, Li Auto Inc (ADR) seems to be the stronger candidate compared to Nio Inc (ADR). This momentum indicator can be pivotal for investment strategies focused on market trends.
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Apart from Quality, Value, and Momentum, A+ Investor also assesses Growth and Estimate Revisions.
Earnings estimate revisions reflect a company’s performance in the last two fiscal quarters. Consistent sales growth is key in growth investing, measured through annual sales growth, five-year sales growth rankings, and positive annual cash from operations.
Combining these factors offers a comprehensive view into a stock's potential. Joining A+ Investor allows you to check if Li Auto Inc (ADR) or Nio Inc (ADR) fits within any of their successful stock screens.
Overall, Li Auto Inc (ADR) boasts a Value Score of 39, a Momentum Score of 72, and a Quality Score of 68.
Nio Inc (ADR) scores a Value Score of 31, a Momentum Score of 48, and a Quality Score of 10.
Comparing these metrics provides a solid basis for assessing the investment potential of each stock. However, consider your portfolio’s asset allocation, risk tolerance, and financial goals to make an informed decision. AAII's extensive resources can assist in aligning your investments with your individual needs.
Conducting personal research and due diligence is crucial in effectively managing your assets and gaining financial independence. Rely on AAII for valuable financial planning and stock-picking insights, unbiased research, and data-driven analysis.
A+ Investor supplements this qualitative guidance with powerful screening tools, helping you narrow down investment choices to suitable stocks, ETFs, or mutual funds.
Our representations don't guarantee that any investor will replicate profits shown in our examples, as past or hypothetical performance isn't necessarily predictive of future results. Consider your own circumstances before making investment decisions, and note that this information was prepared in good faith but may contain errors or omissions. The full disclaimer can be read here.
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