GNTX vs MGA: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
MGA is the larger of the two ($17.65B market cap): the incumbent the market prices for continued execution (8.49x forward earnings, beta 1.81). GNTX is the smaller challenger ($4.47B), priced similarly on forward earnings (9.59x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
GNTX vs MGA: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | GNTX | MGA | What it tells you |
|---|---|---|---|
| Market cap | $4.47B | $17.65B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 9.59 | 8.49 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 11.12 | 24.26 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.85 | 1.81 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 8% of range | 75% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.74 | 1.50 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how GNTX and MGA affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. GNTX and MGA share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined GNTX and MGA exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Gentex Corporation (GNTX) do?
Gentex Corporation designs and manufactures electro-optical products, best known for interior and exterior auto-dimming (electrochromic) rearview mirrors that it supplies to nearly every major automaker worldwide. The company holds an estimated ~92% global share of interior auto-dimming mirrors, a near-monopoly that has historically delivered gross margins in the mid-30s and strong free cash flow. Beyond mirrors, Gentex sells camera-monitor systems, driver and cabin monitoring, dimmable aircraft windows and cockpit displays for aerospace, fire-protection products (smoke alarms and signaling), and, following the 2025 acquisition of VOXX International, premium audio and aftermarket consumer electronics.
What does Magna International (MGA) do?
Magna International is a Canadian company and one of the largest automotive suppliers in the world, serving nearly every major global automaker. Its business is organized into four reporting segments: Body Exteriors & Structures (body, chassis, exterior, and roof systems); Power & Vision (powertrain, electronics, mirrors, lighting, mechatronics, and driver-assistance technology); Seating Systems; and Complete Vehicles, which engineers and assembles entire vehicles for automakers on a contract basis. This breadth means Magna's content can appear across many parts of a car regardless of the brand on the badge.
GNTX vs MGA: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- GNTX drivers: Mirror dominance and content growth; New verticals: aerospace, sensing and fire protection.
- MGA drivers: Diversified vehicle content; Margin discipline over volume.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The largest near-term risk is tariffs and trade tension in China, where Gentex has paused shipments of certain mirrors and seen customers cancel or delay orders, cutting China revenue well below prior forecasts. For MGA, magna's biggest risk is cyclicality.
GNTX or MGA: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick GNTX if you believe its drivers more; MGA if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the GNTX and MGA guides.
GNTX vs MGA: the full fundamentals
GNTX. Gentex trades near 11x trailing and about 10x forward earnings, roughly 1.7x sales, with almost no debt and about $243 million of cash, a valuation that has compressed as the shares fell about 19% over the past year. The market is weighing a flat core business, tariff exposure, and a mix shift toward lower-margin VOXX and contract-manufacturing revenue against steady cash generation and buybacks. The October 23 Q3 report and the first contract-manufacturing announcement are the next data points.
MGA. Magna trades at cyclical-supplier multiples: about ~0.4x sales and ~5.4x EV/EBITDA, with a forward P/E under ~9x on consensus 2027 EPS of about ~$7.77. The gap between the trailing and forward P/E comes from charges that pushed reported earnings into small losses in two recent quarters, not from an expected leap in the business. The October 30, 2026 third-quarter report is the next check, with consensus near ~$1.60 per share.
Headline figures (approximate, October 2026): GNTX shows revenue (ttm) ~$2.63B, q2 2026 revenue ~$651M (down ~1% YoY); EPS ~$0.58 vs ~$0.50 estimate, 2026 revenue guidance ~$2.65B to $2.75B (2027 target ~$2.8B to $2.9B), margins (ttm) ~34% gross, ~19% operating, ~15.5% net; MGA shows revenue (ttm) ~$42.7 billion, up ~3.3% in the latest quarter, margins ~14.7% gross, ~5.6% operating, ~1.8% net, net income (ttm) ~$761 million, adjusted eps (q2 2026) ~$1.86 vs ~$1.53 expected.
The bottom line: GNTX vs MGA
GNTX and MGA are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined GNTX and MGA exposure against your real portfolio. It is not an investment adviser.
Wondering how GNTX or MGA fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Gentex Corporation with AI
Connect the broker you already use and ask Walnut's AI how GNTX fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between GNTX and MGA?
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Gentex Corporation designs and manufactures electro-optical products, best known for interior and exterior auto-dimming (electrochromic) rearview mirrors that it supplies to nearly every major automaker worldwide. Magna International is a Canadian company and one of the largest automotive suppliers in the world, serving nearly every major global automaker. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is GNTX or MGA the better stock?
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Neither is universally better. MGA is the larger incumbent; GNTX is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, GNTX or MGA?
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On forward P/E (as of October 2026), GNTX trades at 9.59x and MGA at 8.49x, so MGA is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both GNTX and MGA?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of GNTX vs MGA?
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GNTX: The largest near-term risk is tariffs and trade tension in China, where Gentex has paused shipments of certain mirrors and seen customers cancel or delay orders, cutting China revenue well below prior forecasts. The business is also cyclical and tied to global light-vehicle production, which has been declining, so a broader auto downturn would pressure volumes. Customer concentration among major automakers, raw-material and supply-chain costs, and the risk that cameras or software displace physical mirrors over the long term all weigh on the outlook. The VOXX integration adds lower-margin, consumer-cyclical revenue that could dilute the company's historically premium margins. Currency swings and mix weakness in Europe, Japan and Korea have also periodically hurt results. Contract manufacturing would dilute margins further, and the strong Q2 2026 gross margin of about 37% leaned on one-time tariff refunds, so the core 34% to 35% range management cites is the more useful baseline. MGA: Magna's biggest risk is cyclicality. As a supplier, its revenue depends on how many vehicles automakers build, so recessions, weak consumer demand, higher interest rates, or production cuts by major customers can pressure results quickly. Concentration among a handful of large automakers means losing or scaling back a key program can matter. The industry's shift toward electric vehicles is uneven, and mistimed investments or delayed EV adoption could weigh on returns. Input-cost inflation, tariffs and trade policy, supply-chain disruptions, and currency swings (Magna reports in US dollars but operates globally) all add volatility. Margins in contract manufacturing and complete-vehicle assembly can be thin, and reported net margin over the past year was under ~2% after two quarters of small GAAP losses. After a ~51% one-year run, the shares sit near analysts' mean target of about ~$73, and BMO downgraded the stock in September while RBC trimmed its target in October. Debt of about ~$6.5 billion against ~$1.4 billion of cash is manageable but not trivial. Verify current guidance and results, including the October 30 report, before acting.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell GNTX or MGA; figures are approximate and dated (as of October 2026). Verify current data before investing.