MG vs. LNR, UNS, MRE, ABCT, XTC, WPRT, SSA, QSR, CCL.B, and GIL
Should you be buying Magna International stock or one of its competitors? The main competitors of Magna International include Linamar (LNR), Uni-Select (UNS), Martinrea International (MRE), ABC Technologies (ABCT), Exco Technologies (XTC), Westport Fuel Systems (WPRT), Spectra Products (SSA), Restaurant Brands International (QSR), CCL Industries (CCL.B), and Gildan Activewear (GIL). These companies are all part of the "consumer cyclical" sector.
Magna International (TSE:MG) and Linamar (TSE:LNR) are both consumer cyclical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, media sentiment, profitability, community ranking, risk, earnings and dividends.
Magna International has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Linamar has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.
Linamar has a net margin of 5.55% compared to Magna International's net margin of 2.35%. Linamar's return on equity of 10.76% beat Magna International's return on equity.
Magna International received 58 more outperform votes than Linamar when rated by MarketBeat users. Likewise, 70.43% of users gave Magna International an outperform vote while only 63.72% of users gave Linamar an outperform vote.
74.6% of Magna International shares are held by institutional investors. Comparatively, 20.4% of Linamar shares are held by institutional investors. 6.2% of Magna International shares are held by insiders. Comparatively, 33.5% of Linamar shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Magna International presently has a consensus price target of C$60.00, suggesting a potential downside of 2.98%. Linamar has a consensus price target of C$88.60, suggesting a potential upside of 27.74%. Given Linamar's stronger consensus rating and higher possible upside, analysts clearly believe Linamar is more favorable than Magna International.
Magna International pays an annual dividend of C$2.58 per share and has a dividend yield of 4.2%. Linamar pays an annual dividend of C$1.00 per share and has a dividend yield of 1.4%. Magna International pays out 53.8% of its earnings in the form of a dividend. Linamar pays out 10.9% 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 higher revenue and earnings than Linamar. Linamar is trading at a lower price-to-earnings ratio than Magna International, indicating that it is currently the more affordable of the two stocks.
In the previous week, Magna International had 2 more articles in the media than Linamar. MarketBeat recorded 3 mentions for Magna International and 1 mentions for Linamar. Linamar's average media sentiment score of 0.39 beat Magna International's score of -0.48 indicating that Linamar is being referred to more favorably in the news media.
Summary
Linamar beats Magna International on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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