MGA vs TSLA

For growth investors, Magna International Inc.

(MGA) is the stronger pick with -0. 2% revenue growth year-over-year, versus -2. 9% for Tesla, Inc. (TSLA). Magna International Inc. (MGA) offers the better valuation at 21. 0x trailing P/E (9. 0x forward), making it the more compelling value choice. Analysts rate Magna International Inc. (MGA) a "Buy" — based on 30 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, Magna International Inc.

(MGA) is the cheapest at 21. 0x versus Tesla, Inc. at 369. 0x. On forward P/E, Magna International Inc. is actually cheaper at 9. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Magna International Inc. wins at 2. 60x versus Tesla, Inc. 's 5. 50x.

Over the past 5 years, Tesla, Inc.

(TSLA) delivered a total return of +80. 2%, compared to -25. 1% for Magna International Inc. (MGA). Over 10 years, the gap is even starker: TSLA returned +28. 6% versus MGA's +88. 0%. 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), Magna International Inc.

(MGA) is the lower-risk stock at 1. 08β versus Tesla, Inc. 's 2. 06β — meaning TSLA is approximately 90% more volatile than MGA relative to the S&P 500. On balance sheet safety, Tesla, Inc. (TSLA) carries a lower debt/equity ratio of 10% versus 65% for Magna International Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Magna International Inc.

(MGA) is pulling ahead at -0. 2% versus -2. 9% for Tesla, Inc. (TSLA). On earnings-per-share growth, the picture is similar: Magna International Inc. grew EPS -15. 1% year-over-year, compared to -47. 0% for Tesla, Inc.. Over a 3-year CAGR, TSLA leads at 5. 2% 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.

Tesla, Inc.

(TSLA) is the more profitable company, earning 4. 0% net margin versus 2. 0% for Magna International Inc. — meaning it keeps 4. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MGA leads at 5. 0% versus 4. 6% for TSLA. At the gross margin level — before operating expenses — TSLA leads at 18. 0%, 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. 60x versus Tesla, Inc. 's 5. 50x. 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. 0x forward P/E versus 213. 0x for Tesla, Inc. — 203. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSLA: 13. 0% to $450. 45.

In this comparison, MGA (3.

1% yield) pays a dividend. TSLA does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Magna International Inc.

(MGA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 08), 3. 1% yield). Tesla, Inc. (TSLA) carries a higher beta of 2. 06 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MGA: +88. 0%, TSLA: +28. 6%), 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: MGA is a mid-cap income-oriented stock; TSLA is a mega-cap quality compounder stock. MGA pays a dividend while TSLA does not, making them suitable for different income and tax situations. 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.