Financial Review: Holley (NYSE:HLLY) vs. BorgWarner (NYSE:BWA)

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

Insider & Institutional Ownership

92.9% of BorgWarner shares are owned by institutional investors. Comparatively, 65.9% of Holley shares are owned by institutional investors. 0.4% of BorgWarner shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BorgWarner and Holley, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BorgWarner 1 6 6 0 2.38
Holley 0 0 6 0 3.00

BorgWarner presently has a consensus price target of $49.08, indicating a potential upside of 12.15%. Holley has a consensus price target of $14.63, indicating a potential upside of 21.27%. Given Holley’s stronger consensus rating and higher possible upside, analysts clearly believe Holley is more favorable than BorgWarner.

Profitability

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

Net Margins Return on Equity Return on Assets
BorgWarner 5.49% 15.95% 6.76%
Holley N/A N/A N/A

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BorgWarner $10.17 billion 1.03 $500.00 million $2.76 15.86
Holley N/A N/A -$4.44 million N/A N/A

BorgWarner has higher revenue and earnings than Holley.

Summary

BorgWarner beats Holley on 7 of the 9 factors compared between the two stocks.

About BorgWarner

BorgWarner, Inc. engages in the provision of technology solutions for combustion, hybrid and electric vehicles. It operates through the following segments: Air Management, e-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment develops and manufactures products to improve fuel economy, reduce emissions and enhance performance. The e-Propulsion & Drivetrain segment focuses on the products that improve fuel economy, reduce emissions, and enhance performance in combustion, hybrid and electric vehicles. The Fuel Injection segment includes gasoline and diesel fuel injection components and systems that deliver efficiency for traditional and hybrid vehicles with gasoline combustion engines. The Aftermarket segment sells products and services to independent aftermarket customers and original equipment service customers. The company was founded in 1928 and is headquartered in Auburn Hills, MI.

About Holley

Empower Ltd. is a blank check company. It formed for the purpose of merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Empower Ltd. is based in New York.

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