Li Auto (NASDAQ:LI) vs. VinFast Auto (NASDAQ:VFS) Head to Head Survey

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

Institutional and Insider Ownership

9.9% of Li Auto shares are owned by institutional investors. 16.2% of VinFast Auto shares are owned by insiders. Comparatively, 48.5% of Li Auto shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares VinFast Auto 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
VinFast Auto	$1.20 billion	N/A	-$2.40 billion	($0.82)	-5.24
Li Auto	$17.44 billion	1.09	$1.65 billion	$1.50	11.92

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

Volatility & Risk

VinFast Auto has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Li Auto has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for VinFast Auto and Li Auto, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VinFast Auto	0	0	4	0	3.00
Li Auto	0	1	6	0	2.86

VinFast Auto presently has a consensus price target of $9.75, suggesting a potential upside of 126.74%. Li Auto has a consensus price target of $40.08, suggesting a potential upside of 124.18%. Given VinFast Auto’s stronger consensus rating and higher possible upside, equities analysts plainly believe VinFast Auto is more favorable than Li Auto.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VinFast Auto	N/A	N/A	-44.67%
Li Auto	8.73%	16.65%	7.27%

Summary

Li Auto beats VinFast Auto on 11 of the 13 factors compared between the two stocks.

About VinFast Auto

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

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.