Comparing BorgWarner (BWA) & The Competition
BorgWarner (NYSE: BWA) is one of 32 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it contrast to its peers? We will compare BorgWarner to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Earnings and Valuation
This table compares BorgWarner and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|BorgWarner||$9.27 billion||$1.54 billion||58.57|
|BorgWarner Competitors||$5.85 billion||$698.05 million||15.44|
BorgWarner has higher revenue and earnings than its peers. BorgWarner is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current ratings and recommmendations for BorgWarner and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BorgWarner presently has a consensus target price of $45.13, indicating a potential downside of 13.42%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 4.22%. Given BorgWarner’s peers stronger consensus rating and higher probable upside, analysts plainly believe BorgWarner has less favorable growth aspects than its peers.
Risk and Volatility
BorgWarner has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, BorgWarner’s peers have a beta of 1.40, meaning that their average stock price is 40% more volatile than the S&P 500.
Institutional and Insider Ownership
91.1% of BorgWarner shares are held by institutional investors. Comparatively, 67.9% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 0.7% of BorgWarner shares are held by insiders. Comparatively, 15.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are held 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.
BorgWarner pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. BorgWarner pays out 62.9% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.6% of their earnings in the form of a dividend. BorgWarner has raised its dividend for 2 consecutive years. BorgWarner lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares BorgWarner and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
BorgWarner beats its peers on 8 of the 15 factors compared.
BorgWarner Inc. is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains. The Drivetrain segment’s products include transmission components and systems, all-wheel drive (AWD) torque transfer systems and rotating electrical devices. The Company’s products are manufactured and sold across the world, primarily to original equipment manufacturers (OEMs) of light vehicles (passenger cars, sport-utility vehicles (SUVs), vans and light trucks). The Company’s products are also sold to other OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks and buses) and off-highway vehicles (agricultural and construction machinery and marine applications.
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