Critical Survey: Magna International (MGA) vs. Stoneridge (SRI)
Stoneridge (NYSE: SRI) and Magna International (NYSE:MGA) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitabiliy.
This table compares Stoneridge and Magna International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
89.1% of Stoneridge shares are owned by institutional investors. Comparatively, 61.4% of Magna International shares are owned by institutional investors. 5.3% of Stoneridge shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Stoneridge and Magna International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stoneridge presently has a consensus target price of $19.50, indicating a potential upside of 26.30%. Magna International has a consensus target price of $50.61, indicating a potential upside of 5.16%. Given Stoneridge’s higher probable upside, equities analysts clearly believe Stoneridge is more favorable than Magna International.
Volatility & Risk
Stoneridge has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Magna International pays an annual dividend of $1.10 per share and has a dividend yield of 2.3%. Stoneridge does not pay a dividend. Magna International pays out 20.1% of its earnings in the form of a dividend. Stoneridge has increased its dividend for 5 consecutive years.
Valuation & Earnings
This table compares Stoneridge and Magna International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stoneridge||$737.67 million||0.59||$80.10 million||$2.79||5.53|
|Magna International||$36.92 billion||0.50||$4.00 billion||$5.47||8.80|
Magna International has higher revenue and earnings than Stoneridge. Stoneridge is trading at a lower price-to-earnings ratio than Magna International, indicating that it is currently the more affordable of the two stocks.
Stoneridge beats Magna International on 10 of the 18 factors compared between the two stocks.
Stoneridge Company Profile
Stoneridge, Inc. is a designer and manufacturer of engineered electrical and electronic components, modules and systems for the automotive, commercial, motorcycle, off-highway and agricultural vehicle markets. The Company operates through three segments: Control Devices, Electronics and PST. The Company’s Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle and includes product lines, such as sensors, switches, valves, and actuators. The Company’s Electronics segment designs and manufactures electronic instrument clusters, electronic control units and driver information systems. The PST segment is engaged in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle industry. It operated in 25 locations in 12 countries, as of December 31, 2016.
Magna International Company Profile
Magna International Inc. (Magna) is a global automotive supplier. The Company’s segments are North America, Europe, Asia, Rest of World, and Corporate and Other. The Company’s product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure, and roof systems and modules, as well as vehicle engineering and contract manufacturing. The Company has over 320 manufacturing operations and approximately 100 product development, engineering and sales centers in over 30 countries. It provides a range of body, chassis and engineering solutions to its original equipment manufacturer (OEM) customers. It has capabilities in powertrain design, development, testing and manufacturing. It offers bumper fascia systems, exterior trim and modular systems. It offers exterior and interior mirror systems. It offers sealing, trim, engineered glass and module systems. It offers softtops, retractable hardtops, modular tops and hardtops.
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