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 risk, earnings, media sentiment, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Do insiders and institutionals have more ownership in LNR or MG?

24.7% of Linamar shares are owned by institutional investors. Comparatively, 48.6% of Magna International shares are owned by institutional investors. 33.5% of Linamar shares are owned by insiders. Comparatively, 6.2% of Magna International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Which has more volatility & risk, LNR or MG?

Linamar has a beta of 1.784947, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Magna International has a beta of 2.017807, meaning that its stock price is 102% more volatile than the S&P 500.

Which has stronger valuation & earnings, 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	0.44	C$591.22M	C$3.53	21.25
Magna International	C$41.61B	0.44	C$758.25M	C$4.26	15.35

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, Linamar's average media sentiment score of 0.00 equaled Magna International'saverage media sentiment score.

Company	Overall Sentiment
Linamar	Neutral
Magna International	Neutral

Do analysts recommend LNR or MG?

Linamar presently has a consensus price target of C$82.40, indicating a potential upside of 9.85%. Magna International has a consensus price target of C$61.00, indicating a potential downside of 6.69%. Given Linamar's stronger consensus rating and higher possible upside, analysts clearly 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

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 1.4%. Magna International pays an annual dividend of C$1.92 per share and has a dividend yield of 2.9%. 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.

Summary

Linamar beats Magna International on 10 of the 17 factors compared between the two stocks.