Magnera (NYSE:MAGN) versus Babcock International Group (OTCMKTS:BCKIY) Head-To-Head Analysis

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

Volatility and Risk

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

Profitability

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

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

Institutional and Insider Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.16	-$159.00 million	($7.64)	-1.92
Babcock International Group	$6.16 billion	1.38	$315.25 million	N/A	N/A

Babcock International Group has higher revenue and earnings than Magnera.

Analyst Recommendations

This is a breakdown of recent recommendations for Magnera and Babcock International Group, as reported by MarketBeat.com.

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

Magnera currently has a consensus price target of $15.50, suggesting a potential upside of 5.93%. Given Magnera’s higher possible upside, equities analysts clearly believe Magnera is more favorable than Babcock International Group.

Summary

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

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.

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.