Foresight vs. Magna: Which Autonomous Vehicle Stock is a Better Buy

NYSE: MGA | Magna International Inc. News, Ratings, and Charts

MGA – Foresight Autonomous Holdings (FRSX) and Magna International (MGA) are two autonomous vehicle stocks. Both are down over the last 3 months amid the selloff in growth stocks. Is it time to buy? Patrick Ryan gives his take.

Autonomous vehicle stocks were in vogue in the second half of 2020. However, exuberance is fading as evidenced by the sector’s 30% tumble to start the new year.
 
Companies that make autonomous vehicles and related technology have the potential to soar to the moon or at least land among the stars in the years and decades ahead. The challenge lies in pinpointing the best autonomous vehicle stocks to buy.
 
Below, we provide a look at two of the autonomous vehicle industry’s most intriguing stocks in Foresight Autonomous Holdings (FRSX - Get Rating) and Magna International (MGA - Get Rating).

Foresight Autonomous Holdings (FRSX - Get Rating)

FRSX is a tech business that designs, develops, and brings three-dimensional diver assistance systems to market. These systems function with the use of several cameras. FRSX technology captures images around the vehicle to determine if there are threats, ultimately preventing potentially fatal accidents.

Headquartered in Ramat Gan, Israel, FRSX certainly has the potential to be in harm’s way as the violence in the Middle East continues to rage on. However, it appears as though FRSX is moving forward with business as usual as violence erupts.

FRSX POWR Ratings

FRSX has an F POWR Rating Grade. The stock has an F Value component grade along with Ds in the Quality, Stability, and Growth components of the POWR Ratings. Click here to learn more about how FRSX grades out in the Momentum and Sentiment components of the POWR Ratings.

Out of 66 publicly traded stocks in the Auto Parts segment, FRSX is ranked toward the bottom at 63rd. However, as a whole, this segment has an A POWR Rating grade. You can learn more about the Auto Parts segment by clicking here.

FRSX Points of Note

FRSX is currently trading at $3.77, which is well below its 52-week high of $12.14. The stock’s beta is quite high at 2.48, meaning it will prove excessively volatile amidst stock market fluctuations that are bound to occur as a result of the economic uncertainty following the final phase of the pandemic and economic recovery.

The single analyst who has provided a price target for FRSX believes the stock will drop to $2.50. If this prediction holds, FRSX investors will lose 43% of their investing dollars.

Magna International (MGA - Get Rating)

MGA, a maker and supplier of vehicle components, is located in Aurora, Canada. MGA specializes in the designing and manufacturing of automotive systems, modules, systems, and assemblies. These components and systems are sold to original equipment manufacturers of both light trucks and cars.

MGA has a forward P/E ratio of 12.92, meaning it is likely a bit undervalued, especially when you factor in the stock is trading only $5 below its 52-week high of $99.72. The stock’s 52-week low is $38.53. MGA’s beta is 1.59, meaning it will not be egregiously volatile if the market significantly fluctuates in the months ahead.

MGA POWR Ratings

MGA is a POWR Ratings success with a B overall grade, indicating the stock is a Buy. MGA has Bs in the Quality, Momentum, and Growth components of the POWR Ratings. Click here to learn more about how MGA fares in the rest of the POWR Ratings components such as Value, Sentiment, and Stability. Of the 66 publicly traded companies in the Auto Parts space, MGA is ranked 12th. You can learn more about the stocks in the Auto Parts sector by clicking here.

What are the Analysts Saying About MGA?

The analysts are predicting MGA will increase in value, establishing an average target price of $108.39. If MGA were to rise to this level, it would increase in value by 12.2%. The highest analyst target price for the stock is $132 while the lowest target price is $60. A total of 19 analysts have issued MGA recommendations. Three of these analysts view the stock as a Strong Buy, 11 consider it a Buy, five consider it a Hold and none view it as a Sell or Strong Sell.

The Better Buy is…

MGA. MGA has vastly superior POWR Ratings, making it the better of these two autonomous vehicle stocks. However, FRSX has the potential to pop as well because China recently approved its patent request, setting the stage for the auto tech specialist to make inroads in the world’s largest market. However, for the time being, MGA is the better play.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


MGA shares were trading at $95.43 per share on Thursday morning, down $0.41 (-0.43%). Year-to-date, MGA has gained 34.79%, versus a 11.13% rise in the benchmark S&P 500 index during the same period.


About the Author: Patrick Ryan


Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MGAGet RatingGet RatingGet Rating
FRSXGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More Magna International Inc. (MGA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MGA News