Lear Corporation (LEA)vsMagna International Inc (MGA)
LEA
Lear Corporation
$141.50
-1.72%
CONSUMER CYCLICAL · Cap: $7.27B
MGA
Magna International Inc
$66.09
-3.02%
CONSUMER CYCLICAL · Cap: $18.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Magna International Inc generates 80% more annual revenue ($42.32B vs $23.52B). LEA leads profitability with a 2.3% profit margin vs 1.6%. LEA appears more attractively valued with a PEG of 0.36. LEA earns a higher WallStSmart Score of 65/100 (B-).
LEA
Strong Buy65
out of 100
Grade: B-
MGA
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LEA.
Margin of Safety
+46.8%
Fair Value
$108.60
Current Price
$66.09
$42.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 124.2% YoY
Attractively priced relative to earnings
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
4.7% revenue growth
2.3% margin — thin
Operating margin of 5.0%
Negative free cash flow — burning cash
Moderate valuation
3.1% revenue growth
ROE of 5.6% — below average capital efficiency
1.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : LEA
The strongest argument for LEA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.36 suggests the stock is reasonably priced for its growth.
Bull Case : MGA
The strongest argument for MGA centers on PEG Ratio, Price/Book. PEG of 0.39 suggests the stock is reasonably priced for its growth.
Bear Case : LEA
The primary concerns for LEA are Revenue Growth, Profit Margin, Operating Margin. Thin 2.3% margins leave little buffer for downturns.
Bear Case : MGA
The primary concerns for MGA are P/E Ratio, Revenue Growth, Return on Equity. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
MGA carries more volatility with a beta of 1.85 — expect wider price swings.
LEA is growing revenue faster at 4.7% — sustainability is the question.
MGA generates stronger free cash flow (452M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LEA scores higher overall (65/100 vs 55/100). MGA offers better value entry with a 46.8% margin of safety. Both earn "Strong 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.
Lear Corporation
CONSUMER CYCLICAL · AUTO PARTS · USA
Lear Corporation designs, develops, designs, manufactures, assembles, and supplies automotive seats, electrical distribution systems, and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. The company is headquartered in Southfield, Michigan.
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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