Analyzing U Power (NASDAQ:UCAR) and Magna International (NYSE:MGA)

Magna International (NYSE:MGA) and U Power (NASDAQ:UCAR) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Volatility & Risk

Magna International has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, U Power has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Magna International and U Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magna International	1	13	5	0	2.21
U Power	0	0	0	0	N/A

Magna International presently has a consensus price target of $49.94, indicating a potential upside of 16.25%. Given Magna International’s higher possible upside, research analysts clearly believe Magna International is more favorable than U Power.

Earnings and Valuation

This table compares Magna International and U Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magna International	$42.80 billion	0.29	$1.21 billion	$3.43	12.52
U Power	$2.78 million	7.86	-$2.72 million	N/A	N/A

Magna International has higher revenue and earnings than U Power.

Profitability

This table compares Magna International and U Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magna International	2.29%	12.53%	4.67%
U Power	N/A	N/A	N/A

Insider and Institutional Ownership

67.5% of Magna International shares are held by institutional investors. Comparatively, 13.2% of U Power shares are held by institutional investors. 0.5% of Magna International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Magna International beats U Power on 9 of the 11 factors compared between the two stocks.

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.

About U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.