Reviewing Jiuzi (NASDAQ:JZXN) and Li Auto (NASDAQ:LI)

Li Auto (NASDAQ:LI) and Jiuzi (NASDAQ:JZXN) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Li Auto	3.60%	6.31%	2.87%
Jiuzi	N/A	N/A	N/A

Volatility & Risk

Li Auto has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Jiuzi has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Li Auto and Jiuzi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Auto	4	13	1	2	2.05
Jiuzi	1	0	0	0	1.00

Li Auto currently has a consensus target price of $21.66, suggesting a potential upside of 27.92%. Given Li Auto’s stronger consensus rating and higher possible upside, research analysts plainly believe Li Auto is more favorable than Jiuzi.

Institutional and Insider Ownership

9.9% of Li Auto shares are held by institutional investors. Comparatively, 0.6% of Jiuzi shares are held by institutional investors. 48.5% of Li Auto shares are held by insiders. Comparatively, 60.6% of Jiuzi shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Auto	$19.79 billion	N/A	$1.10 billion	$0.58	29.20
Jiuzi	$1.40 million	1.65	-$59.13 million	N/A	N/A

Li Auto has higher revenue and earnings than Jiuzi.

Summary

Li Auto beats Jiuzi on 10 of the 12 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 Jiuzi

Jiuzi Holdings, Inc., through its subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., franchises and operates retail stores under the Jiuzi brand that sell new energy vehicles, plug-in electric vehicles, and related components and parts in the People’s Republic of China. It provides corporate investment consulting services. The company also engages in new energy vehicle retail, new energy vehicle component sales, new energy vehicle battery sales, vehicle audio equipment and electronics sales, vehicle ornament sales, technology service and development, marketing planning, vehicle rentals, etc. In addition, it is involved in the research and development of automotive components and part and technical service; sales of electrical accessories for new energy vehicles; sales of charging/battery swap infrastructure for new energy vehicles; sales of electricity chargers, and sales of automotive spare parts and accessories, as well as in the management services of supply chain, automobiles sales, and whole vehicle sales of new energy cars. The company was founded in 2017 and is based in Hangzhou, the People’s Republic of China.