LEA vs. BWA, GNTX, ALSN, MOD, LCII, DORM, ALV, VC, ADNT, and GTX
Should you be buying Lear stock or one of its competitors? The main competitors of Lear include BorgWarner (BWA), Gentex (GNTX), Allison Transmission (ALSN), Modine Manufacturing (MOD), LCI Industries (LCII), Dorman Products (DORM), Autoliv (ALV), Visteon (VC), Adient (ADNT), and Garrett Motion (GTX). These companies are all part of the "motor vehicle parts & accessories" industry.
Lear (NYSE:LEA) and BorgWarner (NYSE:BWA) are both mid-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, media sentiment, valuation, dividends, profitability, analyst recommendations, institutional ownership and community ranking.
Lear received 17 more outperform votes than BorgWarner when rated by MarketBeat users. However, 59.15% of users gave BorgWarner an outperform vote while only 58.78% of users gave Lear an outperform vote.
97.0% of Lear shares are held by institutional investors. Comparatively, 95.7% of BorgWarner shares are held by institutional investors. 0.8% of Lear shares are held by insiders. Comparatively, 0.5% of BorgWarner shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Lear pays an annual dividend of $3.08 per share and has a dividend yield of 2.3%. BorgWarner pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. Lear pays out 31.8% of its earnings in the form of a dividend. BorgWarner pays out 16.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
In the previous week, Lear had 17 more articles in the media than BorgWarner. MarketBeat recorded 29 mentions for Lear and 12 mentions for BorgWarner. BorgWarner's average media sentiment score of 0.77 beat Lear's score of 0.40 indicating that BorgWarner is being referred to more favorably in the news media.
Lear currently has a consensus price target of $162.44, suggesting a potential upside of 19.03%. BorgWarner has a consensus price target of $44.30, suggesting a potential upside of 33.46%. Given BorgWarner's stronger consensus rating and higher possible upside, analysts plainly believe BorgWarner is more favorable than Lear.
Lear has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, BorgWarner has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.
BorgWarner has lower revenue, but higher earnings than Lear. BorgWarner is trading at a lower price-to-earnings ratio than Lear, indicating that it is currently the more affordable of the two stocks.
BorgWarner has a net margin of 3.94% compared to Lear's net margin of 2.44%. BorgWarner's return on equity of 14.69% beat Lear's return on equity.
Summary
BorgWarner beats Lear on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LEA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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