Thanks for all your help, Mike
MG has been widely recognized as the industry leader within the auto parts manufacturing industry. On the other hand, LNR has mostly traded at a cheaper valuation due to a less efficient operating track record.
Over the long term, we prefer paying a slight premium valuation and sticking with industry leaders, as a good management team may surprise investors on the upside. With that said, the industry that both MG and LNR operate in is quite challenging—cyclical, capital-intensive, and with limited visibility into the future. Therefore, industry recovery may take a while, and investors need to be patient with these names. We think both are ok but LNR has higher margins and is slightly cheaper. However, MG has higher returns on assets and equity. Growth expectations are fairly similar between the two. If looking for exposure to this space in general, we would probably prefer to err on the side of diversification and own a bit of both.