Allison Transmission Holdings Inc (ALSN)vsMagna International Inc (MGA)
ALSN
Allison Transmission Holdings Inc
$125.65
-3.41%
CONSUMER CYCLICAL · Cap: $10.31B
MGA
Magna International Inc
$62.37
-0.49%
CONSUMER CYCLICAL · Cap: $15.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Magna International Inc generates 706% more annual revenue ($42.27B vs $5.24B). ALSN leads profitability with a 11.1% profit margin vs 2.0%. MGA appears more attractively valued with a PEG of 0.34. ALSN earns a higher WallStSmart Score of 83/100 (A-).
ALSN
Exceptional Buy83
out of 100
Grade: A-
MGA
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.0%
Fair Value
$95.45
Current Price
$125.65
$30.20 premium
Margin of Safety
+47.9%
Fair Value
$110.93
Current Price
$62.37
$48.56 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 121.4% year-over-year
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Strong operational efficiency at 20.1%
Earnings expanding 41.1% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 33.3% YoY
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
ROE of 7.1% — below average capital efficiency
2.0% margin — thin
Weak financial health signals
Revenue declined 3.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ALSN
The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 121.4% demonstrates continued momentum. PEG of 0.56 suggests the stock is reasonably priced for its growth.
Bull Case : MGA
The strongest argument for MGA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.34 suggests the stock is reasonably priced for its growth.
Bear Case : ALSN
The primary concerns for ALSN are Altman Z-Score, Debt/Equity. Debt-to-equity of 1.93 is elevated, increasing financial risk.
Bear Case : MGA
The primary concerns for MGA are Return on Equity, Profit Margin, Piotroski F-Score. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
ALSN profiles as a growth stock while MGA is a value play — different risk/reward profiles.
MGA carries more volatility with a beta of 1.82 — expect wider price swings.
ALSN is growing revenue faster at 121.4% — sustainability is the question.
MGA generates stronger free cash flow (320M), providing more financial flexibility.
Bottom Line
ALSN scores higher overall (83/100 vs 64/100) and 121.4% revenue growth. MGA offers better value entry with a 47.9% margin of safety. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Allison Transmission Holdings Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.
Visit Website →Magna International Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.
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