Contrasting Magna International (NYSE:MGA) and Regency Affiliates (NYSE:RAFI)

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Magna International (NYSE:MGA) and Regency Affiliates (OTCMKTS:RAFI) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Magna International and Regency Affiliates, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magna International 1 6 5 0 2.33
Regency Affiliates 0 0 0 0 N/A

Magna International presently has a consensus price target of $58.25, indicating a potential upside of 20.50%. Given Magna International’s higher possible upside, equities analysts plainly believe Magna International is more favorable than Regency Affiliates.

Risk and Volatility

Magna International has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Regency Affiliates has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Magna International and Regency Affiliates’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magna International 6.75% 19.01% 8.22%
Regency Affiliates N/A N/A N/A

Earnings & Valuation

This table compares Magna International and Regency Affiliates’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magna International $40.83 billion 0.38 $2.30 billion $6.71 7.20
Regency Affiliates N/A N/A N/A N/A N/A

Magna International has higher revenue and earnings than Regency Affiliates.

Insider & Institutional Ownership

57.6% of Magna International shares are owned by institutional investors. 0.0% of Regency Affiliates shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Magna International pays an annual dividend of $1.46 per share and has a dividend yield of 3.0%. Regency Affiliates pays an annual dividend of $0.26 per share and has a dividend yield of 3.7%. Magna International pays out 21.8% of its earnings in the form of a dividend. Magna International has raised its dividend for 7 consecutive years.

Summary

Magna International beats Regency Affiliates on 9 of the 12 factors compared between the two stocks.

About Magna International

Magna International Inc. designs, develops, and manufactures automotive systems, assemblies, modules, and components in North America, Europe, Asia Pacific, and internationally. The Body Exteriors & Structures segment provides body structures; chassis structures, such as frame and structural assemblies, chassis subframes, and suspension systems; exterior systems and modules, including hoods, roofs, door panels, front end modules, liftgate modules, polycarbonate roof panels, liftgate sensor integration systems, and fascia; trim and automotive jewelry comprises engineered glass, trim and roof racks, and running boards; non-visible and visible active grille shutters, active air deflectors, and underbody panels; and fuel systems, pipes and components, and alternative energy storage systems. Its Power & Vision segment offers manual, hybrid, and dual-clutch transmissions systems; mild hybrid solutions; high voltage edrives and electrified components; chassis, glow plug control, powertrain control, and mechatronic control modules; four-wheel drive, all-wheel drive, and disconnect systems; thermal management and lubrication systems; transmission clutch/carrier components, precision stampings and shafts, and automated driving systems; latching systems, door modules, power closures, hinges and wireforming, and handles; interior and exterior mirrors, and actuators; and front and rear lighting, tail lamps, and other lighting products. The Seating Systems segment provides recliners, manual and power adjusters, and seat structures. Its Complete Vehicles segment offers modular solutions for system and parts, as well as complete vehicle manufacturing services. The company serves original equipment manufacturer and non-automotive customers, as well as tier 1 companies, and medium and heavy truck manufacturers. Magna International Inc. was founded in 1957 and is based in Aurora, Canada.

About Regency Affiliates

Regency Affiliates, Inc., through its interest in MESC Capital, LLC, owns an on-site energy facility that supplies approximately 61 megawatts of steam and electricity to a Kimberly-Clark tissue mill in Mobile, Alabama. It also owns and operates 34.3 acres of land and rental property of approximately 717,000 square feet comprising a 2-story office building and a connected 6-story office tower in Woodlawn, Maryland through a limited partnership interest. The company is based in New York, New York.

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