WallStSmart

China Automotive Systems Inc (CAAS)vsMagna International Inc (MGA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Magna International Inc generates 5934% more annual revenue ($42.01B vs $696.27M). CAAS leads profitability with a 4.2% profit margin vs 2.0%. CAAS appears more attractively valued with a PEG of 0.37. MGA earns a higher WallStSmart Score of 56/100 (C).

CAAS

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 2.14

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

CAASUndervalued (+70.1%)

Margin of Safety

+70.1%

Fair Value

$15.44

Current Price

$4.22

$11.22 discount

UndervaluedFair: $15.44Overvalued
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

CAAS3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3710/10

Growing faster than its price suggests

P/E RatioValuation
4.4x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

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

CAAS2 concerns · Avg: 3.0/10
Market CapQuality
$129.73M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.2%3/10

4.2% margin — thin

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 : CAAS

The strongest argument for CAAS centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 11.1% demonstrates continued momentum. PEG of 0.37 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 : CAAS

The primary concerns for CAAS are Market Cap, Profit Margin. Thin 4.2% 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.

CAAS is growing revenue faster at 11.1% — sustainability is the question.

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

Bottom Line

CAAS scores higher overall (56/100 vs 56/100) and 11.1% revenue growth. 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.

China Automotive Systems Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

China Automotive Systems, Inc. manufactures and sells automotive components and systems in the People's Republic of China. The company is headquartered in Jingzhou City, the People's Republic of China.

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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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