Head to Head Comparison: Magnera (NYSE:MAGN) and Babcock International Group (OTCMKTS:BCKIY)

Babcock International Group (OTCMKTS:BCKIY) and Magnera (NYSE:MAGN) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Babcock International Group and Magnera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Babcock International Group	0	0	0	1	4.00
Magnera	1	0	2	0	2.33

Magnera has a consensus target price of $15.50, suggesting a potential upside of 10.25%. Given Magnera’s higher probable upside, analysts clearly believe Magnera is more favorable than Babcock International Group.

Profitability

This table compares Babcock International Group and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Babcock International Group	N/A	N/A	N/A
Magnera	-4.96%	-14.47%	-3.94%

Volatility & Risk

Babcock International Group has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Magnera has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Earnings and Valuation

This table compares Babcock International Group and Magnera”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Babcock International Group	$6.16 billion	1.28	$315.25 million	N/A	N/A
Magnera	$3.20 billion	0.16	-$159.00 million	($7.64)	-1.84

Babcock International Group has higher revenue and earnings than Magnera.

Summary

Babcock International Group beats Magnera on 9 of the 13 factors compared between the two stocks.

About Babcock International Group

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment. The company also offers naval architecture, engineering, and project management services; submarines and complex engineering services in support of various decommissioning programs and projects, training and operation support, new build program management, and design and installation; critical vehicle fleet management, and equipment support and training services for military and civil customers; and designs, assesses, manufactures, installs, maintains, and decommissions vehicles for police, fire and ambulance, civil service, military, and other security-focused organizations. In addition, it provides plain line track renewal services; and engineering services for track projects, signaling, telecommunications, and on-track plants. Further, the company offers critical engineering services to defense and civil customers, including pilot training, equipment support, and airbase management, as well as operates aviation fleets that provide delivering emergency services. The company was founded in 1891 and is headquartered in London, the United Kingdom.

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.