Li Auto Inc (LI)vsToyota Motor Corporation ADR (TM)
LI
Li Auto Inc
$18.08
+1.86%
CONSUMER CYCLICAL · Cap: $18.19B
TM
Toyota Motor Corporation ADR
$210.93
+0.55%
CONSUMER CYCLICAL · Cap: $273.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 44820% more annual revenue ($50.45T vs $112.31B). TM leads profitability with a 7.3% profit margin vs 1.0%. LI appears more attractively valued with a PEG of 0.93. TM earns a higher WallStSmart Score of 53/100 (C-).
LI
Hold44
out of 100
Grade: D
TM
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1661.5%
Fair Value
$1.09
Current Price
$18.08
$16.99 premium
Margin of Safety
-96.6%
Fair Value
$121.38
Current Price
$210.93
$89.55 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Attractively priced relative to earnings
Areas to Watch
ROE of 1.6% — below average capital efficiency
1.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 11.2x book value
7.3% margin — thin
Earnings declined 42.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : LI
The strongest argument for LI centers on PEG Ratio, Price/Book. PEG of 0.93 suggests the stock is reasonably priced for its growth.
Bull Case : TM
The strongest argument for TM centers on Market Cap, P/E Ratio.
Bear Case : LI
The primary concerns for LI are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 110.9x leaves little room for execution misses. Thin 1.0% margins leave little buffer for downturns.
Bear Case : TM
The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
LI carries more volatility with a beta of 0.60 — expect wider price swings.
TM is growing revenue faster at 8.6% — sustainability is the question.
LI generates stronger free cash flow (-7.4B), providing more financial flexibility.
Monitor AUTO MANUFACTURERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TM scores higher overall (53/100 vs 44/100). Both earn "Buy" and "Hold" 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.
Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
Compare with Other AUTO MANUFACTURERS Stocks
Want to dig deeper into these stocks?