Magna International (MG) Competitors

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

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

48.7% of Magna International shares are held by institutional investors. Comparatively, 24.9% of Linamar shares are held by institutional investors. 6.2% of Magna International shares are held by company insiders. Comparatively, 33.5% of Linamar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Does the media prefer MG or LNR?

In the previous week, Magna International and Magna International both had 1 articles in the media. Magna International's average media sentiment score of 0.95 beat Linamar's score of 0.75 indicating that Magna International is being referred to more favorably in the media.

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

Do analysts recommend MG or LNR?

Magna International currently has a consensus target price of C$61.00, suggesting a potential downside of 4.01%. Linamar has a consensus target price of C$82.40, suggesting a potential upside of 6.85%. Given Linamar's stronger consensus rating and higher probable upside, analysts clearly believe Linamar is more favorable than Magna International.

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

Is MG or LNR a better dividend stock?

Magna International pays an annual dividend of C$1.92 per share and has a dividend yield of 3.0%. Linamar pays an annual dividend of C$1.04 per share and has a dividend yield of 1.3%. Magna International pays out 45.1% of its earnings in the form of a dividend. Linamar pays out 29.5% 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 & risk, MG or LNR?

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

Which has stronger earnings & valuation, MG or LNR?

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
Magna International	C$41.61B	0.43	C$758.25M	C$4.26	14.92
Linamar	C$10.19B	0.45	C$591.22M	C$3.53	21.85

Is MG or LNR 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
Magna International	2.52%	9.11%	3.82%
Linamar	5.58%	10.73%	5.47%

Summary

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