Li Auto (NASDAQ:LI) and Bridgestone (OTCMKTS:BRDCY) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Li Auto	5.64%	11.37%	5.05%
Bridgestone	N/A	N/A	N/A

Volatility and Risk

Li Auto has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Bridgestone has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Institutional & Insider Ownership

9.9% of Li Auto shares are held by institutional investors. 48.5% of Li Auto shares are held by company insiders. Comparatively, 57.1% of Bridgestone shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Li Auto and Bridgestone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	3	9	1	2	2.13
Bridgestone	0	0	0	1	4.00

Li Auto currently has a consensus price target of $25.79, suggesting a potential upside of 17.96%. Given Li Auto’s higher probable upside, research analysts plainly believe Li Auto is more favorable than Bridgestone.

Earnings & Valuation

This table compares Li Auto and Bridgestone”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Auto	$19.79 billion	1.16	$1.10 billion	$1.05	20.82
Bridgestone	$29.30 billion	1.03	$1.88 billion	N/A	N/A

Bridgestone has higher revenue and earnings than Li Auto.

Summary

Li Auto beats Bridgestone on 9 of the 13 factors compared between the two stocks.

About Li Auto

Li Auto Inc. operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment. The company offers its products through online and offline channels. 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, the People's Republic of China.

About Bridgestone

Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. The company offers tires and tire tubes for passenger cars, trucks, buses, construction and off-road mining vehicles, industrial and agricultural machinery, aircraft, motorcycles, scooters, and other vehicles; automotive parts; automotive maintenance and repair services; and raw materials for tires and other products. It also provides chemical products, such as belts, hoses, rubber crawlers/MT pads, resin piping systems, seismic isolation rubbers, bridge rubber bearings, and block type rubber covered chain type bridge fall prevention devices. In addition, the company offers golf balls, golf clubs, and other sporting goods; bicycles, bicycle-related goods, and others; and finance and other services. It has operations in Japan, the Americas, Europe, Russia, the Middle East, India, Africa, China, Asia, Oceania, Oceania, and internationally. The company was incorporated in 1931 and is headquartered in Tokyo, Japan.