Magna International (NYSE: MGA) and Cooper-Standard Holdings (NYSE:CPS) are both mid-cap cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Earnings & Valuation

This table compares Magna International and Cooper-Standard Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Magna International $36.45 billion 0.53 $2.03 billion $5.61 9.61
Cooper-Standard Holdings $3.47 billion 0.61 $138.98 million $7.31 16.54

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

Profitability

This table compares Magna International and Cooper-Standard Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magna International 5.39% 18.56% 8.32%
Cooper-Standard Holdings 3.88% 24.99% 7.71%

Dividends

Magna International pays an annual dividend of $1.10 per share and has a dividend yield of 2.0%. Cooper-Standard Holdings does not pay a dividend. Magna International pays out 19.6% of its earnings in the form of a dividend. Magna International has raised its dividend for 5 consecutive years.

Insider & Institutional Ownership

58.4% of Magna International shares are held by institutional investors. Comparatively, 97.9% of Cooper-Standard Holdings shares are held by institutional investors. 1.1% of Cooper-Standard Holdings shares are held by company 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

Magna International has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Cooper-Standard Holdings has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Magna International and Cooper-Standard Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magna International 1 3 8 1 2.69
Cooper-Standard Holdings 1 3 2 0 2.17

Magna International presently has a consensus target price of $55.80, suggesting a potential upside of 3.49%. Cooper-Standard Holdings has a consensus target price of $114.80, suggesting a potential downside of 5.05%. Given Magna International’s stronger consensus rating and higher probable upside, research analysts plainly believe Magna International is more favorable than Cooper-Standard Holdings.

Summary

Magna International beats Cooper-Standard Holdings on 11 of the 18 factors compared between the two stocks.

About Magna International

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.

About Cooper-Standard Holdings

Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.

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