Alfa Laval (OTCMKTS:ALFVY – Get Free Report) and Magnera (NYSE:MAGN – Get Free Report) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
0.0% of Alfa Laval shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 2.3% of Magnera shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Alfa Laval has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Magnera has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alfa Laval | 0 | 4 | 3 | 1 | 2.63 |
| Magnera | 1 | 1 | 1 | 0 | 2.00 |
Magnera has a consensus price target of $17.00, indicating a potential upside of 17.08%. Given Magnera’s higher possible upside, analysts plainly believe Magnera is more favorable than Alfa Laval.
Earnings & Valuation
This table compares Alfa Laval and Magnera”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alfa Laval | $6.33 billion | 3.47 | $699.19 million | $1.99 | 26.75 |
| Magnera | $3.20 billion | 0.16 | -$159.00 million | ($7.64) | -1.90 |
Alfa Laval has higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than Alfa Laval, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alfa Laval and Magnera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alfa Laval | 12.17% | 19.80% | 9.06% |
| Magnera | -4.96% | -14.47% | -3.94% |
Summary
Alfa Laval beats Magnera on 11 of the 15 factors compared between the two stocks.
About Alfa Laval
Alfa Laval Corporate AB provides heat transfer, separation, and fluid handling products and solutions worldwide. It operates in three divisions: Energy, Food & Water, and Marine. The company offers oil/gas-fired steam and composite steam boilers, exhaust gas economizer, and ballast water treatment systems, and exhaust gas cleaning products. It also provides sensing and control, cleaning validation, condition monitoring, agitators, tank, powder mixers, fittings, and tubes, as well as wall mounted cleaning nozzles, rotary jet and heads; and tank accessories and covers. In addition, the company offers centrifugal, rotary lobe, three screw, twin screw, and circumferential piston pumps. Further, it provides butterfly, control and check, double seal, diaphragm, double seat, regulating, safety, sampling, shutter, single seat, and ball valves. Additionally, the company offers heat exchanger, tube-in-tube heat exchangers, and process shell-and-tube heat exchangers. Furthermore, it provides finned tube air heat, scraped surface heat exchangers, and various plate heat exchangers, wet surface, and HYAC hybrid air coolers. The company also offers decanters and separator related products. It serves energy, utilities, home, personal care, food, dairy, beverage, marine, transportation, pharmaceutical, biotech, water, and wastewater industries. Alfa Laval Corporate AB was founded in 1883 and is headquartered in Lund, Sweden.
About Magnera
Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.
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