Linamar (LNR) Competitors

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

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 4.5%. 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.

Do insiders & institutionals believe in LNR or MG?

20.1% of Linamar shares are held by institutional investors. Comparatively, 76.1% 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, hedge funds and endowments believe a company is poised for long-term growth.

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%

Do analysts rate LNR or MG?

Linamar currently has a consensus target price of C$64.40, suggesting a potential downside of 2.41%. Magna International has a consensus target price of C$61.00, suggesting a potential upside of 7.07%. 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

Does the media prefer LNR or MG?

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 news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Linamar	0 Very Positive mention(s)	2 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 more volatility and risk, LNR or MG?

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

Which has preferable 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	6.89
Magna International	C$30.04B	0.38	C$758.25M	C$5.33	10.70

Summary

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