Head to Head Contrast: Bayerische Motoren Werke (OTCMKTS:BAMXF) versus Li Auto (NASDAQ:LI)

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

Insider & Institutional Ownership

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

Valuation & Earnings

This table compares Bayerische Motoren Werke and Li Auto”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bayerische Motoren Werke	$154.09 billion	0.38	$7.89 billion	$12.57	8.11
Li Auto	$19.79 billion	1.05	$1.10 billion	$1.05	18.83

Bayerische Motoren Werke has higher revenue and earnings than Li Auto. Bayerische Motoren Werke is trading at a lower price-to-earnings ratio than Li Auto, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke	5.14%	7.58%	2.72%
Li Auto	5.64%	11.37%	5.05%

Analyst Recommendations

This is a summary of current recommendations and price targets for Bayerische Motoren Werke and Li Auto, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke	0	3	0	1	2.50
Li Auto	3	10	1	2	2.13

Li Auto has a consensus price target of $24.94, indicating a potential upside of 26.14%. Given Li Auto’s higher possible upside, analysts plainly believe Li Auto is more favorable than Bayerische Motoren Werke.

Volatility & Risk

Bayerische Motoren Werke has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Li Auto has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

Li Auto beats Bayerische Motoren Werke on 11 of the 15 factors compared between the two stocks.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.

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.