BorgWarner (NYSE:BWA) & Veoneer (NYSE:VNE) Head to Head Contrast


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Veoneer (NYSE:VNE) and BorgWarner (NYSE:BWA) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Risk and Volatility

Veoneer has a beta of 2.67, meaning that its stock price is 167% more volatile than the S&P 500. Comparatively, BorgWarner has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Earnings and Valuation

This table compares Veoneer and BorgWarner’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veoneer $1.90 billion 1.22 -$500.00 million ($4.92) -4.24
BorgWarner $10.17 billion 0.97 $746.00 million $4.13 9.72

BorgWarner has higher revenue and earnings than Veoneer. Veoneer is trading at a lower price-to-earnings ratio than BorgWarner, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Veoneer and BorgWarner’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veoneer -37.71% -29.33% -19.22%
BorgWarner 4.11% 11.48% 5.50%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Veoneer and BorgWarner, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veoneer 3 5 1 0 1.78
BorgWarner 1 5 7 0 2.46

Veoneer presently has a consensus price target of $16.22, indicating a potential downside of 22.16%. BorgWarner has a consensus price target of $44.21, indicating a potential upside of 10.12%. Given BorgWarner’s stronger consensus rating and higher possible upside, analysts clearly believe BorgWarner is more favorable than Veoneer.

Institutional and Insider Ownership

26.7% of Veoneer shares are held by institutional investors. Comparatively, 86.3% of BorgWarner shares are held by institutional investors. 0.3% of Veoneer shares are held by company insiders. Comparatively, 0.5% of BorgWarner shares are held by company 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.

Summary

BorgWarner beats Veoneer on 12 of the 14 factors compared between the two stocks.

About Veoneer

Veoneer, Inc. engages in the design, development, manufacture, and sale of automotive safety electronics. It operates in two segments, Electronics and Brake Systems. It offers automotive radars, mono-and stereo-vision cameras, night driving assist systems, positioning systems, advanced driver assist systems (ADAS), electronic control units, airbag control units and crash sensors, brake control systems, and ADAS software for highly automated driving (HAD) and autonomous driving (AD). The company also provides driver monitoring systems, LiDAR sensors, RoadScape positioning, and other technologies critical for HAD and AD solutions. Veoneer, Inc. was incorporated in 2017 and is headquartered in Stockholm, Sweden.

About BorgWarner

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company's Engine segment offers turbocharger and turbocharger actuators; eBoosters; and timing systems products, including timing chains, variable cam timing, crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains, and hybrid power transmission chains. It also provides emissions systems, such as electric air pumps and exhaust gas recirculation (EGR) modules, EGR coolers and valves, glow plugs, and instant starting systems; thermal systems products comprising viscous fan drives, polymer fans, coolant pumps, cabin heaters, battery heaters, and battery charging; and gasoline ignition technologies. The company's Drivetrain segment offers friction and mechanical products that include dual and friction clutch modules, friction and separator plates, transmission bands, torque converter and one-way clutches, and torsional vibration dampers. It also provides electro-hydraulic solenoids, transmission solenoid modules, and dual clutch control modules; rear-wheel drive/all-wheel drive (AWD) transfer case systems, front wheel drive-AWD coupling systems, and cross-axle coupling systems; starters, alternators, and hybrid electric motors; and motor controllers, battery chargers, and uninterrupted power source systems. The company sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was founded in 1987 and is headquartered in Auburn Hills, Michigan.

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