Dongfeng Motor Group (OTCMKTS:DNFGY) and Magna International (NYSE:MGA) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Dividends

Dongfeng Motor Group pays an annual dividend of $1.16 per share and has a dividend yield of 2.5%. Magna International pays an annual dividend of $1.46 per share and has a dividend yield of 2.7%. Magna International pays out 21.8% of its earnings in the form of a dividend.

Volatility and Risk

Dongfeng Motor Group has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Earnings & Valuation

This table compares Dongfeng Motor Group and Magna International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dongfeng Motor Group $18.50 billion 0.43 $2.08 billion N/A N/A
Magna International $40.83 billion 0.40 $2.30 billion $6.71 8.04

Magna International has higher revenue and earnings than Dongfeng Motor Group.

Analyst Recommendations

This is a summary of recent ratings and price targets for Dongfeng Motor Group and Magna International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dongfeng Motor Group 0 1 1 0 2.50
Magna International 1 7 4 0 2.25

Magna International has a consensus price target of $55.00, indicating a potential upside of 1.97%. Given Magna International’s higher possible upside, analysts clearly believe Magna International is more favorable than Dongfeng Motor Group.

Profitability

This table compares Dongfeng Motor Group and Magna International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dongfeng Motor Group N/A N/A N/A
Magna International 4.43% 17.59% 7.49%

Insider & Institutional Ownership

0.0% of Dongfeng Motor Group shares are owned by institutional investors. Comparatively, 56.7% of Magna International shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Magna International beats Dongfeng Motor Group on 10 of the 13 factors compared between the two stocks.

Dongfeng Motor Group Company Profile

Dongfeng Motor Group Company Limited manufactures and sells commercial vehicles, passenger vehicles, and auto engines and parts in the People's Republic of China. The company operates through four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. It provides commercial vehicles, including trucks and buses; passenger vehicles comprising basic passenger cars, MPVs, and SUVs; and electric vehicles, off-road vehicles, and special commercial vehicles. The company also engages in other automotive-related businesses, including the manufacture of vehicle manufacturing equipment; and provision of financial services. In addition, it is involved in the marketing and sale of automobiles; and key assembly other automotive-related businesses. The company was founded in 1969 and is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited is a subsidiary of Dongfeng Motor Corporation.

Magna International Company Profile

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.

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