HONDA MOTOR CO., LTD. vs Li Auto Inc., two Auto Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
What is priced in: Honda at 7.5 times earnings, a profitable Japanese automaker priced cheap, Li Auto at 150.6, a Chinese EV maker priced for volume growth, a twentyfold multiple gap on similar thin current margins. Honda nets 4.16% of revenue against Li's 1.01%, and earns 7.15% on equity to Li's 1.56%. Honda runs debt-free (ex-finance); Li carries 0.13 turns. Honda's free-cash figure is slightly negative this year at negative 3.49%; Li's is negative 7.1%, both investing. The pair prices an established Japanese maker against a Chinese EV upstart; Honda's proven manufacturing earns real returns at a low multiple, Li's growth story commands twenty times the price, and the market is betting Li's scale-up outruns Honda's steadiness.
Comparison updated 2026-07-11.
| Metric | HMC | LI |
|---|---|---|
| Price | $26.84 | $12.05 |
| Market cap | $41.8B | $25.8B |
| Sector | Auto Manufacturers | Auto Manufacturers |
| Stage | Mature | Growth |
| Implied growth (priced in) | — | +10.7% |
| P/E | 7.5 | 150.6 |
| P/B | 0.50 | 2.47 |
| P/S | 0.29 | 1.61 |
| EV/EBITDA | 0.6 | 32.4 |
| Revenue growth | +13.4% | +53.8% |
| Gross margin | — | 18.7% |
| Operating margin | 5.6% | -0.5% |
| Net margin | 4.2% | 1.0% |
| Return on equity | 7.2% | 1.6% |
| Return on assets | 2.9% | 0.7% |
| Return on invested capital | 6.6% | -0.6% |
| FCF yield | -3.5% | -7.1% |
| Dividend yield | 5.9% | — |
| Debt / equity | 0.00 | 0.13 |
| Current ratio | 1.36 | 1.81 |
| Altman Z (solvency) | 1.67 | 2.56 |
| Piotroski F (quality) | 6 / 9 | 2 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.