Delphi Automotive PLC (DLPH) and Magna International (MGA) Financial Contrast
Delphi Automotive PLC (NYSE: DLPH) and Magna International (NYSE:MGA) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
This is a summary of current ratings and recommmendations for Delphi Automotive PLC and Magna International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delphi Automotive PLC||1||4||13||0||2.67|
Delphi Automotive PLC presently has a consensus price target of $103.94, indicating a potential upside of 6.08%. Magna International has a consensus price target of $53.10, indicating a potential upside of 0.00%. Given Delphi Automotive PLC’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Delphi Automotive PLC is more favorable than Magna International.
Institutional & Insider Ownership
90.1% of Delphi Automotive PLC shares are held by institutional investors. Comparatively, 59.4% of Magna International shares are held by institutional investors. 0.3% of Delphi Automotive PLC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Delphi Automotive PLC has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
This table compares Delphi Automotive PLC and Magna International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delphi Automotive PLC||7.51%||60.14%||14.35%|
Valuation and Earnings
This table compares Delphi Automotive PLC 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|
|Delphi Automotive PLC||$17.01 billion||1.54||$3.06 billion||$4.72||20.76|
|Magna International||$37.16 billion||0.53||$4.01 billion||$5.54||9.58|
Magna International has higher revenue and earnings than Delphi Automotive PLC. Magna International is trading at a lower price-to-earnings ratio than Delphi Automotive PLC, indicating that it is currently the more affordable of the two stocks.
Delphi Automotive PLC pays an annual dividend of $1.16 per share and has a dividend yield of 1.2%. Magna International pays an annual dividend of $1.10 per share and has a dividend yield of 2.1%. Delphi Automotive PLC pays out 24.6% of its earnings in the form of a dividend. Magna International pays out 19.9% 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. Delphi Automotive PLC has raised its dividend for 5 consecutive years. Magna International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Delphi Automotive PLC beats Magna International on 11 of the 18 factors compared between the two stocks.
Delphi Automotive PLC Company Profile
Delphi Automotive PLC is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic, powertrain and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, Powertrain Systems, and Electronics and Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Powertrain Systems segment offers products for engine management systems (EMS). The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.
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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