Magnera (NYSE:MAGN) vs. Alfa Laval (OTCMKTS:ALFVY) Critical Comparison

Alfa Laval (OTCMKTS:ALFVY) and Magnera (NYSE:MAGN) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Alfa Laval and Magnera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alfa Laval	0	4	3	1	2.63
Magnera	1	1	1	0	2.00

Magnera has a consensus target price of $17.00, suggesting a potential upside of 12.80%. Given Magnera’s higher probable upside, analysts plainly believe Magnera is more favorable than Alfa Laval.

Risk and Volatility

Alfa Laval has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Magnera has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Alfa Laval shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 2.3% of Magnera shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Alfa Laval and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alfa Laval	12.17%	19.80%	9.06%
Magnera	-4.96%	-14.47%	-3.94%

Earnings and Valuation

This table compares Alfa Laval and Magnera”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alfa Laval	$6.33 billion	N/A	$699.19 million	$1.99	27.60
Magnera	$3.20 billion	0.17	-$159.00 million	($7.64)	-1.97

Alfa Laval has higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than Alfa Laval, indicating that it is currently the more affordable of the two stocks.

Summary

Alfa Laval beats Magnera on 10 of the 14 factors compared between the two stocks.

About Alfa Laval

Alfa Laval Corporate AB provides heat transfer, separation, and fluid handling products and solutions worldwide. It operates in three divisions: Energy, Food & Water, and Marine. The company offers oil/gas-fired steam and composite steam boilers, exhaust gas economizer, and ballast water treatment systems, and exhaust gas cleaning products. It also provides sensing and control, cleaning validation, condition monitoring, agitators, tank, powder mixers, fittings, and tubes, as well as wall mounted cleaning nozzles, rotary jet and heads; and tank accessories and covers. In addition, the company offers centrifugal, rotary lobe, three screw, twin screw, and circumferential piston pumps. Further, it provides butterfly, control and check, double seal, diaphragm, double seat, regulating, safety, sampling, shutter, single seat, and ball valves. Additionally, the company offers heat exchanger, tube-in-tube heat exchangers, and process shell-and-tube heat exchangers. Furthermore, it provides finned tube air heat, scraped surface heat exchangers, and various plate heat exchangers, wet surface, and HYAC hybrid air coolers. The company also offers decanters and separator related products. It serves energy, utilities, home, personal care, food, dairy, beverage, marine, transportation, pharmaceutical, biotech, water, and wastewater industries. Alfa Laval Corporate AB was founded in 1883 and is headquartered in Lund, Sweden.

About Magnera

Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.