Magna International (MGA) Competitors

BorgWarner (NYSE:BWA) and Magna International (NYSE:MGA) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, community ranking, valuation, analyst recommendations, media sentiment, institutional ownership, earnings, dividends and profitability.

Is BWA or MGA a better dividend stock?

BorgWarner pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Magna International pays an annual dividend of $1.90 per share and has a dividend yield of 4.2%. BorgWarner pays out 16.7% of its earnings in the form of a dividend. Magna International pays out 54.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Magna International has raised its dividend for 5 consecutive years. Magna International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has more volatility and risk, BWA or MGA?

BorgWarner has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Do analysts rate BWA or MGA?

BorgWarner currently has a consensus price target of $43.76, indicating a potential upside of 22.62%. Magna International has a consensus price target of $60.00, indicating a potential upside of 32.30%. Given BorgWarner's higher probable upside, analysts clearly believe Magna International is more favorable than BorgWarner.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BorgWarner	0 Sell rating(s)	7 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	2.59
Magna International	0 Sell rating(s)	11 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.31

Which has higher valuation & earnings, BWA or MGA?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BorgWarner	$14.20B	0.57	$625M	$2.64	13.52
Magna International	$42.80B	0.30	$1.21B	$3.52	12.88

Do insiders and institutionals hold more shares of BWA or MGA?

95.7% of BorgWarner shares are held by institutional investors. Comparatively, 67.5% of Magna International shares are held by institutional investors. 0.6% of BorgWarner shares are held by insiders. Comparatively, 0.5% of Magna International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Does the MarketBeat Community prefer BWA or MGA?

Magna International received 47 more outperform votes than BorgWarner when rated by MarketBeat users. Likewise, 63.90% of users gave Magna International an outperform vote while only 59.23% of users gave BorgWarner an outperform vote.

Company	Underperform	Outperform
BorgWarner	Outperform Votes 661 59.23%	Underperform Votes 455 40.77%
Magna International	Outperform Votes 708 63.90%	Underperform Votes 400 36.10%

Does the media refer more to BWA or MGA?

In the previous week, BorgWarner had 8 more articles in the media than Magna International. MarketBeat recorded 13 mentions for BorgWarner and 5 mentions for Magna International. Magna International's average media sentiment score of 1.27 beat BorgWarner's score of -0.20 indicating that BorgWarner is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
BorgWarner	8 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Magna International	1 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is BWA or MGA more profitable?

BorgWarner has a net margin of 4.02% compared to BorgWarner's net margin of 2.35%. Magna International's return on equity of 15.33% beat BorgWarner's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
BorgWarner	4.02%	15.33%	6.62%
Magna International	2.35%	12.96%	4.81%

Summary

BorgWarner beats Magna International on 12 of the 21 factors compared between the two stocks.