Magna International (MG) Competitors

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

Do analysts rate LNR or MG?

Linamar currently has a consensus price target of C$65.40, indicating a potential upside of 35.83%. Given Linamar's higher probable upside, equities 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)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
Magna International	1 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.25

Does the media refer more to LNR or MG?

In the previous week, Magna International had 2 more articles in the media than Linamar. MarketBeat recorded 3 mentions for Magna International and 1 mentions for Linamar. Linamar's average media sentiment score of 0.34 beat Magna International's score of -0.30 indicating that Linamar is being referred to more favorably in the media.

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

Do institutionals and insiders believe in 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Does the MarketBeat Community prefer LNR or MG?

Magna International received 56 more outperform votes than Linamar when rated by MarketBeat users. Likewise, 69.73% of users gave Magna International an outperform vote while only 62.42% of users gave Linamar an outperform vote.

Company	Underperform	Outperform
Linamar	Outperform Votes 407 62.42%	Underperform Votes 245 37.58%
Magna International	Outperform Votes 463 69.73%	Underperform Votes 201 30.27%

Which has more risk and volatility, LNR or MG?

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

Which has stronger 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	0.28	C$591.22M	C$9.58	5.03
Magna International	C$30.04B	0.30	C$758.25M	C$5.33	8.38

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%

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 2.1%. Magna International pays an annual dividend of C$2.56 per share and has a dividend yield of 5.7%. 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.

Summary

Magna International beats Linamar on 12 of the 20 factors compared between the two stocks.