Reviewing Magna International (NYSE:MGA) and Beam Global (NASDAQ:BEEM)

Beam Global (NASDAQ:BEEM) and Magna International (NYSE:MGA) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

This table compares Beam Global and Magna International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beam Global	-105.89%	-61.03%	-37.12%
Magna International	2.50%	11.88%	4.59%

Valuation and Earnings

This table compares Beam Global and Magna International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beam Global	$49.34 million	0.54	-$11.28 million	($1.91)	-0.74
Magna International	$42.84 billion	0.38	$1.01 billion	$3.66	15.77

Magna International has higher revenue and earnings than Beam Global. Beam Global is trading at a lower price-to-earnings ratio than Magna International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Beam Global and Magna International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beam Global	1	1	3	0	2.40
Magna International	1	14	3	0	2.11

Beam Global currently has a consensus price target of $4.00, suggesting a potential upside of 183.69%. Magna International has a consensus price target of $52.80, suggesting a potential downside of 8.54%. Given Beam Global’s stronger consensus rating and higher probable upside, research analysts clearly believe Beam Global is more favorable than Magna International.

Institutional & Insider Ownership

26.6% of Beam Global shares are held by institutional investors. Comparatively, 67.5% of Magna International shares are held by institutional investors. 5.6% of Beam Global shares are held by company insiders. Comparatively, 0.5% of Magna International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Beam Global has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Summary

Magna International beats Beam Global on 9 of the 13 factors compared between the two stocks.

About Beam Global

Beam Global, a clean-technology innovation company, engages in the design, development, engineering, manufacture, and sale of renewably energized infrastructure products and battery solutions. Its product portfolio includes EV ARC (electric vehicle autonomous renewable charger), an infrastructure product that uses integrated solar power and battery storage to provide a mounting asset and a source of power for factory installed electric vehicle charging stations; Solar Tree DCFC, an off-grid, renewably energized, and single-column mounted smart generation and energy storage system to provide a 150kW DC fast charge to one or more electric vehicles, such as electric buses, heavy-duty vehicles, agricultural equipment, public transportation, and electric vehicles used in the construction industry; and EV ARC DCFC, a DC fast charging system for charging EVs. The company is also involved in the development of EV-Standard, a lamp standard, EV charging, and emergency power product that uses an existing streetlamp's foundation and a combination of solar, wind, grid connection, and onboard energy storage to provide curbside charging; and UAV ARC, an off-grid and renewably energized product and network used to charge aerial drone (UAV) fleets. It offers its solutions for electric vehicle (EV) charging infrastructure, energy storage, energy security, disaster preparedness, street lighting, telecommunications, energy infrastructure, and outdoor media and branding industries. The company was formerly known as Envision Solar International, Inc. and changed its name to Beam Global in September 2020. Beam Global was incorporated in 2006 and is headquartered in San Diego, California.

About Magna International

Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis system, battery enclosures, and engineering and testing; and exteriors, including fascia and trims, front end modules, integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, breakthrough lightings, side doors, and greenhouse products. The Power & Vision segment offers electric drive systems and components, such as emotors, inverters, onboard chargers, gearboxes, and e-clutch; dedicated hybrid drives, dual and hybrid dual clutch, and manual transmissions; AWD/4WD products and rear drive modules; transmission, driveline components, and ICE; far camera module, remote camera heads, interior sensing camera, radars, thermal sensing, and domain controllers; interior and exterior mirrors, camera monitoring system driver/occupant monitoring systems, and smart actuators; forward and rear lighting, and lit grilles/panels/displays; latching system, door modules, charge port doors, power system, hinges, and door handles; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.