Li Auto (NASDAQ:LI) vs. Mullen Automotive (NASDAQ:MULN) Head-To-Head Survey

Mullen Automotive (NASDAQ:MULN) and Li Auto (NASDAQ:LI) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

11.7% of Mullen Automotive shares are held by institutional investors. Comparatively, 9.9% of Li Auto shares are held by institutional investors. 3.6% of Mullen Automotive shares are held by company insiders. Comparatively, 48.5% of Li Auto shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Mullen Automotive and Li Auto”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mullen Automotive	$4.01 million	0.35	-$457.06 million	N/A	N/A
Li Auto	$144.46 billion	0.16	$1.65 billion	$1.05	21.65

Li Auto has higher revenue and earnings than Mullen Automotive.

Risk and Volatility

Mullen Automotive has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mullen Automotive	-12,717.94%	-2,736.27%	-215.31%
Li Auto	7.20%	13.03%	5.55%

Analyst Recommendations

This is a breakdown of current recommendations for Mullen Automotive and Li Auto, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mullen Automotive	0	0	0	0	0.00
Li Auto	1	4	4	0	2.33

Li Auto has a consensus price target of $35.73, suggesting a potential upside of 57.19%. Given Li Auto’s stronger consensus rating and higher possible upside, analysts plainly believe Li Auto is more favorable than Mullen Automotive.

Summary

Li Auto beats Mullen Automotive on 9 of the 12 factors compared between the two stocks.

About Mullen Automotive

Mullen Automotive, Inc., an electric vehicle company, manufactures, sells, and distributes electric vehicles. Its products include passenger electric vehicles and commercial vehicles; and provides solid-state polymer battery technology. The company is headquartered in Brea, California.

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.