Li Auto Inc (LI)vsFerrari NV (RACE)
LI
Li Auto Inc
$11.81
+1.37%
CONSUMER CYCLICAL · Cap: $12.18B
RACE
Ferrari NV
$413.78
+1.26%
CONSUMER CYCLICAL · Cap: $71.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Li Auto Inc generates 1325% more annual revenue ($104.79B vs $7.35B). RACE leads profitability with a 22.3% profit margin vs -4.4%. RACE appears more attractively valued with a PEG of 3.43. RACE earns a higher WallStSmart Score of 58/100 (C).
LI
Avoid33
out of 100
Grade: F
RACE
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.6%
Fair Value
$82.13
Current Price
$11.81
$70.32 discount
Margin of Safety
-65.1%
Fair Value
$250.64
Current Price
$413.78
$163.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 45 in profit
Strong operational efficiency at 31.1%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
ROE of -7.0% — below average capital efficiency
Premium valuation, high expectations priced in
Trading at 17.2x book value
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : LI
The strongest argument for LI centers on Price/Book.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 22.3% and operating margin at 31.1%.
Bear Case : LI
The primary concerns for LI are Altman Z-Score, Piotroski F-Score, PEG Ratio.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
LI profiles as a turnaround stock while RACE is a mature play — different risk/reward profiles.
RACE carries more volatility with a beta of 0.60 — expect wider price swings.
RACE is growing revenue faster at 8.4% — sustainability is the question.
RACE generates stronger free cash flow (330M), providing more financial flexibility.
Bottom Line
RACE scores higher overall (58/100 vs 33/100), backed by strong 22.3% margins. LI offers better value entry with a 76.6% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Li Auto Inc
CONSUMER CYCLICAL · AUTO MANUFACTURERS · China
Li Auto Inc. designs, develops, manufactures and sells smart electric sport utility vehicles (SUVs) in China. The company is headquartered in Beijing, China.
Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
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