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.
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Li Auto Inc is a company mainly engaged in the design, development, manufacture and sale of smart electric vehicles. The main products include Li MEGA, high-voltage battery electric vehicle; Li L9, a six-seat flagship family sport utility vehicle (SUV); Li L8, a six-seat family SUV; Li L7, a five-seat flagship family SUV. The Company is also engaged in the provision of value-added services such as paid regular servicing of the vehicle, free vehicle pick-ups and deliveries, unlimited high-speed data plan, discounts on service and products offerings, installation of charging stalls, and vehicle internet connection services.
As of May 3, 2024, Li Auto Inc (ADR) had a $29.2 billion market capitalization, compared to the Auto & Truck Manufacturers median of $215.3 million. Li Auto Inc (ADR)’s stock is NA in 2024, NA in the previous five trading days and up 23.13% in the past year.
Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data. D D
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.
Neither Li Auto Inc (ADR) or Nio Inc - ADR has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Li Auto Inc (ADR) or Nio Inc - ADR is the better investment when it comes to value. B F
Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.
As you can clearly see from the Quality Grade breakdown above, Li Auto Inc (ADR) has a better overall quality grade than Nio Inc - ADR. For investors who are looking for companies with higher quality than others in the same industry, Li Auto Inc (ADR) could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
About Li Auto Inc (ADR) and Nio Inc - ADR
NIO Inc is a China-based holding company principally engaged in the research, development and manufacturing of premium smart electric vehicles. The Company is mainly engaged in the design, development, manufacture and sales of high-end smart electric vehicles. The Company's products mainly include ES8, ES6, EC6 and ET7. The Company develops battery swapping technologies and autonomous driving technologies. Its electric vehicles apply NAD (NIO Autonomous Driving) technology, including super computing platform NIO Adam and super sensing system NIO Aquila. The Company is also engaged in the provision of charging piles, vehicle internet connection services and extended lifetime warranties. The Company mainly conducts its businesses in the domestic market.
Latest Auto & Truck Manufacturers and Li Auto Inc (ADR), Nio Inc - ADR Stock News
Currently, Li Auto Inc (ADR)’s price-earnings ratio is 18.3. Li Auto Inc (ADR)’s trailing 12-month revenue is $17.1 billion with a 9.5% net profit margin. Year-over-year quarterly sales growth most recently was 136.4%. Analysts expect adjusted earnings to reach $12.544 per share for the current fiscal year. Li Auto Inc (ADR) does not currently pay a dividend.
Currently, Nio Inc - ADR does not have a price-earnings ratio. Nio Inc - ADR’s trailing 12-month revenue is $7.7 billion with a -38.0% net profit margin. Year-over-year quarterly sales growth most recently was 6.5%. Analysts expect adjusted earnings to reach $-7.873 per share for the current fiscal year. Nio Inc - ADR does not currently pay a dividend.
How We Compare Li Auto Inc (ADR) and Nio Inc - ADR Stock Grades
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Li Auto Inc (ADR) and Nio Inc - ADR’s stock grades to see how they measure up against one another.
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Li Auto Inc (ADR) and Nio Inc - ADR Stock Value Grades
Company
Ticker
Value
Li Auto Inc (ADR)
LI
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.
Li Auto Inc (ADR) has a Value Score of 39, which is Expensive.
Nio Inc - ADR has a Value Score of 31, which is Expensive.
The Value Stock Winner: No Clear Winner
Li Auto Inc (ADR) and Nio Inc - ADR’s Quality Grades
Company
Ticker
Quality
Li Auto Inc (ADR)
LI
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.
Li Auto Inc (ADR) has a Quality Score of 68, which is Strong.
Nio Inc - ADR has a Quality Score of 10, which is Very Weak.
The Quality Grade Winner: Li Auto Inc (ADR)
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Nio Inc - ADR NIOC
Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.
Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.
Li Auto Inc (ADR) has a Momentum Score of 72, which is Strong.
Nio Inc - ADR has a Momentum Score of 48, which is Average.
As you can clearly see from the Momentum Grade breakdown above, Li Auto Inc (ADR) is considered to have stronger momentum compared to Nio Inc - ADR. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Li Auto Inc (ADR) could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
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In addition to Quality, Value and Momentum, A+ Investor also provides grades for Growth and Estimate Revisions.
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AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.
Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).
Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.
These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Li Auto Inc (ADR) and Nio Inc - ADR pass any of our 60+ stock screens that have outperformed the market since their creation.
Overall, Li Auto Inc (ADR) stock has a Value Score of 39, Momentum Score of 72 and Quality Score of 68.
Nio Inc - ADR stock has a Value Score of 31, Momentum Score of 48 and Quality Score of 10.
Comparing Li Auto Inc (ADR) and Nio Inc - ADR’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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