Comparing Magna International (NYSE:MGA) and Niu Technologies (NASDAQ:NIU)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Niu Technologies	-0.94%	-4.37%	-1.35%
Magna International	1.99%	12.73%	4.99%

Institutional & Insider Ownership

75.1% of Niu Technologies shares are held by institutional investors. Comparatively, 67.5% of Magna International shares are held by institutional investors. 10.2% of Niu Technologies shares are held by insiders. Comparatively, 0.5% of Magna International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Niu Technologies and Magna International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Niu Technologies	$4.31 billion	0.05	-$5.63 million	($0.08)	-34.25
Magna International	$42.01 billion	0.36	$829.00 million	$2.95	18.44

Magna International has higher revenue and earnings than Niu Technologies. Niu Technologies is trading at a lower price-to-earnings ratio than Magna International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Niu Technologies and Magna International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Niu Technologies	1	1	0	0	1.50
Magna International	1	12	5	1	2.32

Niu Technologies presently has a consensus price target of $3.50, suggesting a potential upside of 27.74%. Magna International has a consensus price target of $61.93, suggesting a potential upside of 13.87%. Given Niu Technologies’ higher probable upside, equities analysts clearly believe Niu Technologies is more favorable than Magna International.

Risk and Volatility

Niu Technologies has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, Magna International has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Summary

Magna International beats Niu Technologies on 12 of the 15 factors compared between the two stocks.

About Niu Technologies

Niu Technologies designs, manufactures, and sells electric scooters in the People’s Republic of China, Europe, and internationally. The company offers RQi, NQi, MQi, SQi, UQi, F, and Gova series smart electric scooters, motorcycles, mopeds, and bicycles; KQi series kick-scooters; BQi series e-bikes; and Niu Aero Sports Bicycles. It also provides accessories and spare parts under the NIU brand name comprising scooter accessories, such as raincoats, gloves, knee pads, storage baskets and tail boxes, smart phone holders, backrests, and locks; lifestyle accessories, which includes T-shirts, coats, jeans, hats, bags, jewelry, notebooks, badges, key chain, and mugs; and performance upgrade components consisting of upgraded wheels, shock absorbers, brake calipers, and carbon fiber body panels. In addition, the company operates NIU app, which provides online repair request, service station locator, theft reporting, smart check, smart services, scooter status, historical riding data, and key diagnostics, as well as NIU cover, which provides insurance services. It sells and services its products through city partners and franchised stores, distributors, third-party e-commerce platforms, and its online store. The company was incorporated in 2014 and is headquartered in Beijing, the People’s Republic of China.

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.