WallStSmart

LKQ Corporation (LKQ)vsMagna International Inc (MGA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Magna International Inc generates 207% more annual revenue ($42.32B vs $13.79B). LKQ leads profitability with a 3.8% profit margin vs 1.6%. MGA appears more attractively valued with a PEG of 0.39. MGA earns a higher WallStSmart Score of 55/100 (C-).

LKQ

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 8.0Quality: 6.0
Piotroski: 3/9Altman Z: 2.51

MGA

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 4.5Value: 8.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LKQUndervalued (+66.6%)

Margin of Safety

+66.6%

Fair Value

$104.28

Current Price

$25.22

$79.06 discount

UndervaluedFair: $104.28Overvalued
MGAUndervalued (+46.8%)

Margin of Safety

+46.8%

Fair Value

$108.60

Current Price

$66.09

$42.51 discount

UndervaluedFair: $108.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LKQ2 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

MGA2 strengths · Avg: 9.0/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

LKQ4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-52.8%2/10

Earnings declined 52.8%

MGA4 concerns · Avg: 3.5/10
P/E RatioValuation
28.2x4/10

Moderate valuation

Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
5.6%3/10

ROE of 5.6% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : LKQ

The strongest argument for LKQ centers on Price/Book, P/E Ratio. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : MGA

The strongest argument for MGA centers on PEG Ratio, Price/Book. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bear Case : LKQ

The primary concerns for LKQ are Revenue Growth, Profit Margin, Piotroski F-Score. Thin 3.8% margins leave little buffer for downturns.

Bear Case : MGA

The primary concerns for MGA are P/E Ratio, Revenue Growth, Return on Equity. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

MGA carries more volatility with a beta of 1.85 — expect wider price swings.

LKQ is growing revenue faster at 4.3% — sustainability is the question.

MGA generates stronger free cash flow (452M), providing more financial flexibility.

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

Bottom Line

MGA scores higher overall (55/100 vs 52/100). LKQ offers better value entry with a 66.6% margin of safety. 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.

LKQ Corporation

CONSUMER CYCLICAL · AUTO PARTS · USA

LKQ Corporation (Like Kind and Quality) is an American provider of alternative and speciality parts to repair and accessorise automobiles and other vehicles.

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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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