BorgWarner (NYSE:BWA) and Autoliv (NYSE:ALV) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Volatility and Risk
BorgWarner has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.
Valuation & Earnings
This table compares BorgWarner and Autoliv's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
BorgWarner | $10.17 billion | 1.06 | $746 million | $4.13 | 10.90 |
Autoliv | $8.55 billion | 0.92 | $461.50 million | $5.72 | 15.73 |
BorgWarner has higher revenue and earnings than Autoliv. BorgWarner is trading at a lower price-to-earnings ratio than Autoliv, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
86.3% of BorgWarner shares are held by institutional investors. Comparatively, 35.3% of Autoliv shares are held by institutional investors. 0.5% of BorgWarner shares are held by insiders. Comparatively, 0.2% of Autoliv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares BorgWarner and Autoliv's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
BorgWarner | 4.11% | 11.48% | 5.50% |
Autoliv | 2.16% | 11.87% | 3.40% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for BorgWarner and Autoliv, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
BorgWarner | 1 | 5 | 6 | 0 | 2.42 |
Autoliv | 2 | 9 | 5 | 0 | 2.19 |
BorgWarner presently has a consensus target price of $43.8462, suggesting a potential downside of 2.56%. Autoliv has a consensus target price of $86.3333, suggesting a potential downside of 4.07%. Given BorgWarner's stronger consensus rating and higher possible upside, equities research analysts clearly believe BorgWarner is more favorable than Autoliv.
Summary
BorgWarner beats Autoliv on 10 of the 14 factors compared between the two stocks.