Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) and Li Auto (NASDAQ:LI – Get Free Report) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Profitability
This table compares Mercedes-Benz Group and Li Auto’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mercedes-Benz Group | 6.99% | 10.90% | 3.84% |
| Li Auto | 7.20% | 13.03% | 5.55% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Mercedes-Benz Group and Li Auto, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mercedes-Benz Group | 1 | 4 | 0 | 0 | 1.80 |
| Li Auto | 0 | 3 | 3 | 0 | 2.50 |
Institutional & Insider 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Mercedes-Benz Group 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 | |
| Mercedes-Benz Group | $157.56 billion | 0.37 | $15.43 billion | C$2.76 | 5.54 |
| Li Auto | $17.44 billion | 1.67 | $1.65 billion | $1.35 | 20.34 |
Mercedes-Benz Group has higher revenue and earnings than Li Auto. Mercedes-Benz Group is trading at a lower price-to-earnings ratio than Li Auto, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Mercedes-Benz Group has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Summary
Li Auto beats Mercedes-Benz Group on 10 of the 14 factors compared between the two stocks.
About Mercedes-Benz Group
Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, 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.
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