Luminar Technologies (NASDAQ:LAZR) and Magna International (NYSE:MGA) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Analyst Recommendations
This is a summary of recent recommendations for Luminar Technologies and Magna International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Luminar Technologies | 0 | 2 | 5 | 0 | 2.71 |
Magna International | 1 | 4 | 9 | 0 | 2.57 |
Luminar Technologies presently has a consensus target price of $35.2857, indicating a potential upside of 63.21%. Magna International has a consensus target price of $76.2667, indicating a potential downside of 14.79%. Given Luminar Technologies' stronger consensus rating and higher possible upside, research analysts clearly believe Luminar Technologies is more favorable than Magna International.
Institutional and Insider Ownership
7.8% of Luminar Technologies shares are held by institutional investors. Comparatively, 59.5% of Magna International shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Luminar Technologies has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Profitability
This table compares Luminar Technologies and Magna International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Luminar Technologies | N/A | -38.58% | -0.54% |
Magna International | 1.46% | 7.31% | 3.02% |
Valuation and Earnings
This table compares Luminar Technologies and Magna International's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Luminar Technologies | N/A | N/A | $5.45 million | N/A | N/A |
Magna International | $39.43 billion | 0.69 | $1.77 billion | $6.05 | 14.79 |
Magna International has higher revenue and earnings than Luminar Technologies.
Summary
Magna International beats Luminar Technologies on 8 of the 10 factors compared between the two stocks.