Critical Analysis: ISUZU MOTORS LT/ADR (OTCMKTS:ISUZY) versus Magna International (OTCMKTS:MGA)

Share on StockTwits

ISUZU MOTORS LT/ADR (OTCMKTS:ISUZY) and Magna International (NYSE:MGA) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ISUZU MOTORS LT/ADR and Magna International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ISUZU MOTORS LT/ADR 0 1 0 0 2.00
Magna International 1 7 6 0 2.36

Magna International has a consensus price target of $58.55, indicating a potential upside of 14.28%. Given Magna International’s stronger consensus rating and higher possible upside, analysts plainly believe Magna International is more favorable than ISUZU MOTORS LT/ADR.

Profitability

This table compares ISUZU MOTORS LT/ADR and Magna International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ISUZU MOTORS LT/ADR 4.17% 8.22% 4.33%
Magna International 4.43% 17.59% 7.49%

Risk & Volatility

ISUZU MOTORS LT/ADR has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of ISUZU MOTORS LT/ADR shares are held by institutional investors. Comparatively, 56.9% of Magna International shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares ISUZU MOTORS LT/ADR and Magna International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ISUZU MOTORS LT/ADR $19.47 billion 0.39 $1.02 billion N/A N/A
Magna International $40.83 billion 0.38 $2.30 billion $6.71 7.63

Magna International has higher revenue and earnings than ISUZU MOTORS LT/ADR.

Dividends

ISUZU MOTORS LT/ADR pays an annual dividend of $0.25 per share and has a dividend yield of 2.4%. Magna International pays an annual dividend of $1.46 per share and has a dividend yield of 2.8%. Magna International pays out 21.8% of its earnings in the form of a dividend. Magna International has increased its dividend for 8 consecutive years. Magna International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Magna International beats ISUZU MOTORS LT/ADR on 11 of the 15 factors compared between the two stocks.

ISUZU MOTORS LT/ADR Company Profile

Isuzu Motors Limited manufactures and sells commercial vehicles, light commercial vehicles, and engine components worldwide. Its products include heavy and medium duty trucks and busses, and light-duty trucks; pickup trucks and sport utility vehicles; and marine and industrial engines. The company was formerly known as Diesel Automobile Industry Co., Ltd. and changed its name to Isuzu Motors Limited in July 1949. Isuzu Motors Limited was founded in 1916 and is headquartered in Tokyo, Japan.

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.

Receive News & Ratings for ISUZU MOTORS LT/ADR Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ISUZU MOTORS LT/ADR and related companies with MarketBeat.com's FREE daily email newsletter.