WallStSmart

Lear Corporation (LEA)vsMagna International Inc (MGA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Magna International Inc generates 81% more annual revenue ($42.01B vs $23.26B). MGA leads profitability with a 2.0% profit margin vs 1.9%. LEA appears more attractively valued with a PEG of 0.36. MGA earns a higher WallStSmart Score of 56/100 (C).

LEA

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 7.3Quality: 4.5
Piotroski: 3/9

MGA

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 7.3Quality: 5.8
Piotroski: 4/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LEASignificantly Overvalued (-146.9%)

Margin of Safety

-146.9%

Fair Value

$56.24

Current Price

$122.23

$65.99 premium

UndervaluedFair: $56.24Overvalued
MGASignificantly Overvalued (-190.1%)

Margin of Safety

-190.1%

Fair Value

$19.92

Current Price

$56.11

$36.19 premium

UndervaluedFair: $19.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LEA3 strengths · Avg: 9.3/10
PEG RatioValuation
0.3610/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

MGA3 strengths · Avg: 8.7/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.518/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.32B8/10

Generating 1.3B in free cash flow

Areas to Watch

LEA4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MGA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

EPS GrowthGrowth
-35.7%2/10

Earnings declined 35.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : LEA

The strongest argument for LEA centers on PEG Ratio, Price/Book, P/E Ratio. PEG of 0.36 suggests the stock is reasonably priced for its growth.

Bull Case : MGA

The strongest argument for MGA centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.51 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 1.9% margins leave little buffer for downturns.

Bear Case : MGA

The primary concerns for MGA are Revenue Growth, Return on Equity, Profit Margin. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

MGA carries more volatility with a beta of 1.83 — expect wider price swings.

LEA is growing revenue faster at 4.8% — sustainability is the question.

MGA generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MGA scores higher overall (56/100 vs 55/100). Both earn "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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