GNTX vs MGA

For growth investors, Gentex Corporation (GNTX) is the stronger pick with 9.

6% revenue growth year-over-year, versus -0. 2% for Magna International Inc. (MGA). Gentex Corporation (GNTX) offers the better valuation at 13. 5x trailing P/E (12. 1x forward), making it the more compelling value choice. Analysts rate Gentex Corporation (GNTX) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Gentex Corporation (GNTX) is the cheapest at 13.

5x versus Magna International Inc. at 21. 0x. On forward P/E, Magna International Inc. is actually cheaper at 9. 3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Magna International Inc. wins at 2. 66x versus Gentex Corporation's 2. 81x.

Over the past 5 years, Magna International Inc.

(MGA) delivered a total return of -25. 1%, compared to -27. 2% for Gentex Corporation (GNTX). Over 10 years, the gap is even starker: MGA returned +91. 9% versus GNTX's +74. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Gentex Corporation (GNTX) is the lower-risk stock at 0.

82β versus Magna International Inc. 's 1. 08β — meaning MGA is approximately 32% more volatile than GNTX relative to the S&P 500.

By revenue growth (latest reported year), Gentex Corporation (GNTX) is pulling ahead at 9.

6% versus -0. 2% for Magna International Inc. (MGA). On earnings-per-share growth, the picture is similar: Gentex Corporation grew EPS -1. 1% year-over-year, compared to -15. 1% for Magna International Inc.. Over a 3-year CAGR, GNTX leads at 9. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Gentex Corporation (GNTX) is the more profitable company, earning 15.

2% net margin versus 2. 0% for Magna International Inc. — meaning it keeps 15. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GNTX leads at 19. 2% versus 5. 0% for MGA. At the gross margin level — before operating expenses — GNTX leads at 34. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Magna International Inc. (MGA) is the more undervalued stock at a PEG of 2. 66x versus Gentex Corporation's 2. 81x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Magna International Inc. (MGA) trades at 9. 3x forward P/E versus 12. 1x for Gentex Corporation — 2. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GNTX: 10. 4% to $26. 00.

All stocks in this comparison pay dividends.

Magna International Inc. (MGA) offers the highest yield at 3. 1%, versus 2. 1% for Gentex Corporation (GNTX).

For long-horizon retirement investors, Gentex Corporation (GNTX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

82), 2. 1% yield). Both have compounded well over 10 years (GNTX: +74. 8%, MGA: +91. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: GNTX is a small-cap deep-value stock; MGA is a mid-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.