Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) and Magna International (NYSE:MGA – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider Ownership
21.3% of Westport Fuel Systems shares are owned by institutional investors. Comparatively, 67.5% of Magna International shares are owned by institutional investors. 0.8% of Westport Fuel Systems shares are owned by company insiders. Comparatively, 0.5% of Magna International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Westport Fuel Systems and Magna International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Westport Fuel Systems | -25.63% | -24.16% | -11.64% |
| Magna International | 2.50% | 11.88% | 4.59% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Westport Fuel Systems | $302.30 million | 0.11 | -$21.84 million | ($3.50) | -0.57 |
| Magna International | $41.79 billion | 0.38 | $1.01 billion | $3.66 | 15.32 |
Magna International has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Magna International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Westport Fuel Systems has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Westport Fuel Systems and Magna International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Westport Fuel Systems | 1 | 1 | 1 | 0 | 2.00 |
| Magna International | 1 | 14 | 3 | 0 | 2.11 |
Westport Fuel Systems presently has a consensus target price of $6.60, indicating a potential upside of 232.49%. Magna International has a consensus target price of $50.73, indicating a potential downside of 9.54%. Given Westport Fuel Systems’ higher probable upside, equities research analysts clearly believe Westport Fuel Systems is more favorable than Magna International.
Summary
Magna International beats Westport Fuel Systems on 11 of the 14 factors compared between the two stocks.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
About Magna International
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis system, battery enclosures, and engineering and testing; and exteriors, including fascia and trims, front end modules, integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, breakthrough lightings, side doors, and greenhouse products. The Power & Vision segment offers electric drive systems and components, such as emotors, inverters, onboard chargers, gearboxes, and e-clutch; dedicated hybrid drives, dual and hybrid dual clutch, and manual transmissions; AWD/4WD products and rear drive modules; transmission, driveline components, and ICE; far camera module, remote camera heads, interior sensing camera, radars, thermal sensing, and domain controllers; interior and exterior mirrors, camera monitoring system driver/occupant monitoring systems, and smart actuators; forward and rear lighting, and lit grilles/panels/displays; latching system, door modules, charge port doors, power system, hinges, and door handles; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.
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