Linamar (LNR) Competitors

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

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

76.1% of Magna International shares are owned by institutional investors. Comparatively, 20.1% of Linamar shares are owned by institutional investors. 6.2% of Magna International shares are owned by company insiders. Comparatively, 33.5% of Linamar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Do analysts prefer MG or LNR?

Magna International currently has a consensus target price of C$61.00, indicating a potential upside of 7.07%. Linamar has a consensus target price of C$64.40, indicating a potential downside of 2.41%. Given Magna International's higher possible upside, research analysts plainly believe Magna International is more favorable than Linamar.

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

Is MG or LNR a better dividend stock?

Magna International pays an annual dividend of C$2.56 per share and has a dividend yield of 4.5%. Linamar pays an annual dividend of C$1.00 per share and has a dividend yield of 1.5%. Magna International pays out 48.1% of its earnings in the form of a dividend. Linamar pays out 10.4% 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 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%

Does the media favor MG or LNR?

In the previous week, Linamar had 2 more articles in the media than Magna International. MarketBeat recorded 3 mentions for Linamar and 1 mentions for Magna International. Magna International's average media sentiment score of 0.67 beat Linamar's score of 0.35 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	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Linamar	0 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more risk & volatility, MG or LNR?

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

Which has stronger valuation and earnings, MG or LNR?

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
Magna International	C$30.04B	0.38	C$758.25M	C$5.33	10.70
Linamar	C$10.59B	0.38	C$591.22M	C$9.58	6.89

Summary

Magna International and Linamar tied by winning 9 of the 18 factors compared between the two stocks.