Historically MG seemed in the lead and had a better dividend. Since the Russian invasion of Ukraine - their investments in Russia were blamed for non-performance.
Also, since then LNR seems to be doing substantially better signifying the sector is doing ok.
Has MG lost its MOJO, had its day and becoming a value trap? (all cash flow going towards dividends, taking on debt and eroding stock price).
Thank you
t is true that historically MG has been the industry leader in auto components manufacturing. MG has experienced challenging operating conditions in the last few years, and the recovery has been quite slow. LNR meanwhile achieved decent revenue and earnings growth in recent quarters (due to contributions from acquisitions).
MG has been hit harder in this cycle due to its presence in countries with weaker economic growth. Russian exposure didn't help, of course. However, we think this is a short-term challenge as the industry is currently at the bottom of the OEM cycle and should recover from here. However, we are open-minded that MG may not be as good an operator as it used to be, time will tell, but for now, we would stick with MG due to its superior track record of operation, geographic diversity, earnings potential and valuation.