Seek Returns logo

ALSN vs. MGA: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ALSN and MGA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolALSNMGA
Company NameAllison Transmission Holdings, Inc.Magna International Inc.
CountryUnited StatesCanada
GICS SectorIndustrialsConsumer Discretionary
GICS IndustryMachineryAutomobile Components
Market Capitalization7.30 billion USD12.54 billion USD
ExchangeNYSENYSE
Listing DateMarch 15, 2012October 5, 1984
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ALSN and MGA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ALSN vs. MGA: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolALSNMGA
5-Day Price Return-3.21%-0.60%
13-Week Price Return-17.30%20.18%
26-Week Price Return-12.17%10.53%
52-Week Price Return2.16%9.35%
Month-to-Date Return-2.53%8.47%
Year-to-Date Return-18.76%2.58%
10-Day Avg. Volume0.94M0.92M
3-Month Avg. Volume0.84M1.51M
3-Month Volatility25.44%27.61%
Beta1.031.08

Profitability

Return on Equity (TTM)

ALSN

45.56%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

ALSN’s Return on Equity of 45.56% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

MGA

10.10%

Automobile Components Industry

Max
22.61%
Q3
12.61%
Median
8.05%
Q1
4.99%
Min
-4.24%

MGA’s Return on Equity of 10.10% is on par with the norm for the Automobile Components industry, indicating its profitability relative to shareholder equity is typical for the sector.

ALSN vs. MGA: A comparison of their Return on Equity (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Net Profit Margin (TTM)

ALSN

23.81%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

ALSN’s Net Profit Margin of 23.81% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

MGA

2.91%

Automobile Components Industry

Max
14.35%
Q3
7.20%
Median
5.37%
Q1
2.20%
Min
-3.89%

MGA’s Net Profit Margin of 2.91% is aligned with the median group of its peers in the Automobile Components industry. This indicates its ability to convert revenue into profit is typical for the sector.

ALSN vs. MGA: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Operating Profit Margin (TTM)

ALSN

31.25%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

ALSN’s Operating Profit Margin of 31.25% is exceptionally high, placing it well above the typical range for the Machinery industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

MGA

4.33%

Automobile Components Industry

Max
18.98%
Q3
10.24%
Median
7.27%
Q1
4.13%
Min
0.23%

MGA’s Operating Profit Margin of 4.33% is around the midpoint for the Automobile Components industry, indicating that its efficiency in managing core business operations is typical for the sector.

ALSN vs. MGA: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Profitability at a Glance

SymbolALSNMGA
Return on Equity (TTM)45.56%10.10%
Return on Assets (TTM)14.19%3.76%
Net Profit Margin (TTM)23.81%2.91%
Operating Profit Margin (TTM)31.25%4.33%
Gross Profit Margin (TTM)48.41%13.83%

Financial Strength

Current Ratio (MRQ)

ALSN

3.36

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

ALSN’s Current Ratio of 3.36 is in the upper quartile for the Machinery industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

MGA

1.16

Automobile Components Industry

Max
4.06
Q3
2.51
Median
1.80
Q1
1.47
Min
0.79

MGA’s Current Ratio of 1.16 falls into the lower quartile for the Automobile Components industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ALSN vs. MGA: A comparison of their Current Ratio (MRQ) against their respective Machinery and Automobile Components industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ALSN

1.37

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

ALSN’s leverage is in the upper quartile of the Machinery industry, with a Debt-to-Equity Ratio of 1.37. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

MGA

0.48

Automobile Components Industry

Max
1.25
Q3
0.63
Median
0.37
Q1
0.18
Min
0.00

MGA’s Debt-to-Equity Ratio of 0.48 is typical for the Automobile Components industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ALSN vs. MGA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Automobile Components industry benchmarks.

Interest Coverage Ratio (TTM)

ALSN

9.46

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

ALSN’s Interest Coverage Ratio of 9.46 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

MGA

8.66

Automobile Components Industry

Max
88.53
Q3
38.84
Median
11.36
Q1
5.08
Min
-21.51

MGA’s Interest Coverage Ratio of 8.66 is positioned comfortably within the norm for the Automobile Components industry, indicating a standard and healthy capacity to cover its interest payments.

ALSN vs. MGA: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Financial Strength at a Glance

SymbolALSNMGA
Current Ratio (MRQ)3.361.16
Quick Ratio (MRQ)2.640.80
Debt-to-Equity Ratio (MRQ)1.370.48
Interest Coverage Ratio (TTM)9.468.66

Growth

Revenue Growth

ALSN vs. MGA: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ALSN vs. MGA: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ALSN

1.21%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

ALSN’s Dividend Yield of 1.21% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

MGA

4.35%

Automobile Components Industry

Max
6.03%
Q3
3.38%
Median
2.62%
Q1
1.38%
Min
0.00%

With a Dividend Yield of 4.35%, MGA offers a more attractive income stream than most of its peers in the Automobile Components industry, signaling a strong commitment to shareholder returns.

ALSN vs. MGA: A comparison of their Dividend Yield (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Dividend Payout Ratio (TTM)

ALSN

11.68%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

ALSN’s Dividend Payout Ratio of 11.68% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

MGA

44.88%

Automobile Components Industry

Max
95.56%
Q3
55.95%
Median
37.10%
Q1
27.90%
Min
0.00%

MGA’s Dividend Payout Ratio of 44.88% is within the typical range for the Automobile Components industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ALSN vs. MGA: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Dividend at a Glance

SymbolALSNMGA
Dividend Yield (TTM)1.21%4.35%
Dividend Payout Ratio (TTM)11.68%44.88%

Valuation

Price-to-Earnings Ratio (TTM)

ALSN

9.63

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

In the lower quartile for the Machinery industry, ALSN’s P/E Ratio of 9.63 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MGA

10.33

Automobile Components Industry

Max
26.62
Q3
17.42
Median
13.22
Q1
11.14
Min
2.52

In the lower quartile for the Automobile Components industry, MGA’s P/E Ratio of 10.33 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ALSN vs. MGA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Price-to-Sales Ratio (TTM)

ALSN

2.29

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

ALSN’s P/S Ratio of 2.29 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MGA

0.30

Automobile Components Industry

Max
1.81
Q3
0.97
Median
0.71
Q1
0.38
Min
0.08

In the lower quartile for the Automobile Components industry, MGA’s P/S Ratio of 0.30 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

ALSN vs. MGA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Automobile Components industry benchmarks.

Price-to-Book Ratio (MRQ)

ALSN

4.57

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

ALSN’s P/B Ratio of 4.57 is in the upper tier for the Machinery industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

MGA

0.85

Automobile Components Industry

Max
2.49
Q3
1.49
Median
0.93
Q1
0.78
Min
0.40

MGA’s P/B Ratio of 0.85 is within the conventional range for the Automobile Components industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ALSN vs. MGA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Automobile Components industry benchmarks.

Valuation at a Glance

SymbolALSNMGA
Price-to-Earnings Ratio (TTM)9.6310.33
Price-to-Sales Ratio (TTM)2.290.30
Price-to-Book Ratio (MRQ)4.570.85
Price-to-Free Cash Flow Ratio (TTM)11.226.83