Magna (TSX:MG) & AutoCanada (TSX:ACQ): 2 Auto Stocks To Buy

Summary

  • In the past six months, AutoCanada stock soared by about 107 per cent.
  • This year, the stock skyrocketed by 104 per cent.
  • Magna stock surged by 126 per cent in a year.

If you are looking to diversify your investment portfolio and explore the Canadian automobile industry, two companies you could take a look at are Toronto Stock Exchange-listed AutoCanada Inc (TSX:ACQ) and Magna International Inc (TSX:MG).

In the past six months, AutoCanada stock soared by about 107 per cent while Magna climbed 69 per cent. Let’s take a closer peek at these two companies.

Magna International Inc (TSX:MG)


The vehicle equipment maker is focused on developing innovative systems for electric vehicles, which is currently a booming industry. Magna International holds a debt-to-equity ratio of 0.53.

On the dividend front, Magna International distributes a quarterly dividend of US$ 0.43, which grew at the rate of 13.03 per cent in the last three years.

The MG stock surged by 126 per cent in a year, while its year-to-date (YTD) growth is about 28 per cent.

1-year chart of Magna’s stock performance (Source: Refinitiv)

The company posted sales of US$ 10.2 billion in its first-quarter fiscal 2021 earnings report, which is an increase of 18 per cent YoY. In the same period, its diluted earnings per share increased by 136 per cent to US$ 2.03.

Its adjusted EBITDA was US$ 770 million in the latest quarter, which was an increase of 91 per cent from Q1 2020.

AutoCanada Inc (TSX:ACQ)


The multi-location North American automobile dealer holds a price-to-book (P/B) ratio of 3.8 and its market cap is C$ 1.3 billion, as per data from TMX. In April, the company completed the acquisition of PG Klassic Autobody in British Columbia to further expand its operations.

1-year chart of AutoCanada’s stock performance (Source: Refinitiv)

ACQ stock's one-month growth is about 41 per cent. This year, the stock skyrocketed by 104 per cent and its one-year growth sits at a whopping 686 per cent.

The company achieved a record revenue of C$ 969.8 million in Q1 2021, posting an increase of 36.8 per cent year-over-year (YoY). Its adjusted EBITDA was C$ 47.2 million in the same period, which was an improvement of 723 per cent YoY.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.


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