Bridgestone (OTCMKTS:BRDCY – Get Free Report) and Li Auto (NASDAQ:LI – Get Free Report) are both large-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Institutional and Insider Ownership
9.9% of Li Auto shares are held by institutional investors. 57.1% of Bridgestone shares are held by insiders. Comparatively, 48.5% of Li Auto shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Bridgestone and Li Auto’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Bridgestone | N/A | N/A | N/A |
Li Auto | 5.64% | 11.37% | 5.05% |
Risk and Volatility
Analyst Ratings
This is a summary of current ratings and target prices for Bridgestone and Li Auto, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Bridgestone | 0 | 0 | 0 | 1 | 4.00 |
Li Auto | 3 | 9 | 1 | 2 | 2.13 |
Li Auto has a consensus price target of $25.79, indicating a potential upside of 14.55%. Given Li Auto’s higher probable upside, analysts plainly believe Li Auto is more favorable than Bridgestone.
Valuation & Earnings
This table compares Bridgestone and Li Auto”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Bridgestone | $29.30 billion | 1.02 | $1.88 billion | N/A | N/A |
Li Auto | $19.79 billion | 1.19 | $1.10 billion | $1.05 | 21.44 |
Bridgestone has higher revenue and earnings than Li Auto.
Summary
Li Auto beats Bridgestone on 9 of the 13 factors compared between the two stocks.
About Bridgestone
Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. The company offers tires and tire tubes for passenger cars, trucks, buses, construction and off-road mining vehicles, industrial and agricultural machinery, aircraft, motorcycles, scooters, and other vehicles; automotive parts; automotive maintenance and repair services; and raw materials for tires and other products. It also provides chemical products, such as belts, hoses, rubber crawlers/MT pads, resin piping systems, seismic isolation rubbers, bridge rubber bearings, and block type rubber covered chain type bridge fall prevention devices. In addition, the company offers golf balls, golf clubs, and other sporting goods; bicycles, bicycle-related goods, and others; and finance and other services. It has operations in Japan, the Americas, Europe, Russia, the Middle East, India, Africa, China, Asia, Oceania, Oceania, and internationally. The company was incorporated in 1931 and is headquartered in Tokyo, Japan.
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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