LKQ vs. MGA, RIVN, OSK, GNTX, LEA, BWA, ALSN, XPEV, NIO, and GPC
Should you be buying LKQ stock or one of its competitors? The main competitors of LKQ include Magna International (MGA), Rivian Automotive (RIVN), Oshkosh (OSK), Gentex (GNTX), Lear (LEA), BorgWarner (BWA), Allison Transmission (ALSN), XPeng (XPEV), NIO (NIO), and Genuine Parts (GPC). These companies are all part of the "auto/tires/trucks" sector.
Magna International (NYSE:MGA) and LKQ (NASDAQ:LKQ) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, community ranking, institutional ownership, analyst recommendations, earnings, profitability, media sentiment and dividends.
Magna International presently has a consensus target price of $62.79, indicating a potential upside of 29.86%. LKQ has a consensus target price of $63.50, indicating a potential upside of 29.28%. Given LKQ's higher possible upside, research analysts plainly believe Magna International is more favorable than LKQ.
In the previous week, LKQ had 8 more articles in the media than Magna International. MarketBeat recorded 19 mentions for LKQ and 11 mentions for Magna International. Magna International's average media sentiment score of 0.38 beat LKQ's score of -0.36 indicating that LKQ is being referred to more favorably in the news media.
67.5% of Magna International shares are held by institutional investors. Comparatively, 95.6% of LKQ shares are held by institutional investors. 0.5% of Magna International shares are held by insiders. Comparatively, 0.6% of LKQ shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Magna International has higher revenue and earnings than LKQ. Magna International is trading at a lower price-to-earnings ratio than LKQ, indicating that it is currently the more affordable of the two stocks.
Magna International has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, LKQ has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
Magna International received 238 more outperform votes than LKQ when rated by MarketBeat users. However, 69.88% of users gave LKQ an outperform vote while only 64.23% of users gave Magna International an outperform vote.
Magna International pays an annual dividend of $1.90 per share and has a dividend yield of 3.9%. LKQ pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Magna International pays out 45.0% of its earnings in the form of a dividend. LKQ pays out 34.3% 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 15 consecutive years and LKQ has raised its dividend for 2 consecutive years. Magna International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
LKQ has a net margin of 6.75% compared to LKQ's net margin of 2.83%. Magna International's return on equity of 17.24% beat LKQ's return on equity.
Summary
LKQ beats Magna International on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LKQ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ 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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