Linamar (LNR) Competitors

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

Do institutionals and insiders hold more shares of LNR or MG?

20.1% of Linamar shares are owned by institutional investors. Comparatively, 76.1% of Magna International shares are owned by institutional investors. 33.5% of Linamar shares are owned by company insiders. Comparatively, 6.2% of Magna International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Is LNR or MG a better dividend stock?

Linamar pays an annual dividend of C$1.00 per share and has a dividend yield of 1.5%. Magna International pays an annual dividend of C$2.56 per share and has a dividend yield of 4.6%. Linamar pays out 10.4% of its earnings in the form of a dividend. Magna International pays out 48.1% 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.

Which has more volatility and risk, LNR or MG?

Linamar has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

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%

Does the media favor LNR or MG?

In the previous week, Magna International had 1 more articles in the media than Linamar. MarketBeat recorded 2 mentions for Magna International and 1 mentions for Linamar. Linamar's average media sentiment score of 1.16 beat Magna International's score of 0.34 indicating that Linamar is being referred to more favorably in the media.

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

Do analysts recommend LNR or MG?

Linamar currently has a consensus price target of C$64.40, indicating a potential downside of 2.95%. Magna International has a consensus price target of C$61.00, indicating a potential upside of 8.93%. Given Magna International's higher probable upside, analysts plainly believe Magna International is more favorable than Linamar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Linamar	0 Sell rating(s)	3 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.25
Magna International	1 Sell rating(s)	3 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.75

Which has better valuation and earnings, LNR or MG?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Linamar	C$10.59B	0.38	C$591.22M	C$9.58	6.93
Magna International	C$30.04B	0.38	C$758.25M	C$5.33	10.52

Summary

Linamar beats Magna International on 10 of the 18 factors compared between the two stocks.