Lear Corporation (LEA)vsMagna International Inc (MGA)
LEA
Lear Corporation
$122.23
+1.53%
CONSUMER CYCLICAL · Cap: $6.50B
MGA
Magna International Inc
$56.11
+2.43%
CONSUMER CYCLICAL · Cap: $15.42B
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
Buy55
out of 100
Grade: C
MGA
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-146.9%
Fair Value
$56.24
Current Price
$122.23
$65.99 premium
Margin of Safety
-190.1%
Fair Value
$19.92
Current Price
$56.11
$36.19 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Generating 1.3B in free cash flow
Areas to Watch
4.8% revenue growth
1.9% margin — thin
Operating margin of 4.4%
Weak financial health signals
2.1% revenue growth
ROE of 7.1% — below average capital efficiency
2.0% margin — thin
Earnings declined 35.7%
Comparative Analysis Report
WallStSmart ResearchBull 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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