Linamar (LNR) Competitors

Linamar (TSE:LNR) and Magna International (TSE:MG) are both consumer cyclical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, media sentiment, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Do analysts recommend LNR or MG?

Linamar presently has a consensus price target of C$82.40, suggesting a potential upside of 6.96%. Magna International has a consensus price target of C$61.00, suggesting a potential downside of 2.76%. Given Linamar's stronger consensus rating and higher possible upside, analysts plainly believe Linamar is more favorable than Magna International.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Linamar	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.80
Magna International	1 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.80

Which has more volatility and risk, LNR or MG?

Linamar has a beta of 1.674445, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.985717, meaning that its share price is 99% more volatile than the S&P 500.

Does the media prefer LNR or MG?

In the previous week, Linamar and Linamar both had 1 articles in the media. Magna International's average media sentiment score of 0.75 beat Linamar's score of 0.43 indicating that Magna International is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Linamar	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Magna International	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher earnings and valuation, LNR or MG?

Magna International has higher revenue and earnings than Linamar. Magna International is trading at a lower price-to-earnings ratio than Linamar, 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
Linamar	C$10.19B	0.45	C$591.22M	C$3.53	21.82
Magna International	C$41.61B	0.42	C$758.25M	C$4.26	14.73

Do insiders & institutionals believe in LNR or MG?

25.0% of Linamar shares are held by institutional investors. Comparatively, 48.6% of Magna International shares are held by institutional investors. 33.5% of Linamar shares are held by insiders. Comparatively, 6.2% of Magna International 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.

Is LNR or MG a better dividend stock?

Linamar pays an annual dividend of C$1.04 per share and has a dividend yield of 1.3%. Magna International pays an annual dividend of C$1.92 per share and has a dividend yield of 3.1%. Linamar pays out 29.5% of its earnings in the form of a dividend. Magna International pays out 45.1% 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.

Is LNR or MG more profitable?

Linamar has a net margin of 5.58% compared to Magna International's net margin of 2.52%. Linamar's return on equity of 10.73% beat Magna International's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Linamar	5.58%	10.73%	5.47%
Magna International	2.52%	9.11%	3.82%

Summary

Linamar beats Magna International on 11 of the 18 factors compared between the two stocks.