BorgWarner (NYSE:BWA – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.
Risk & Volatility
BorgWarner has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.
Profitability
This table compares BorgWarner and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BorgWarner | 1.93% | 17.89% | 7.51% |
| Westport Fuel Systems | -25.63% | -24.16% | -11.64% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BorgWarner | $14.32 billion | 0.77 | $277.00 million | $1.25 | 42.38 |
| Westport Fuel Systems | $302.30 million | 0.12 | -$21.84 million | ($3.50) | -0.60 |
BorgWarner has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than BorgWarner, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for BorgWarner and Westport Fuel Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BorgWarner | 1 | 6 | 8 | 0 | 2.47 |
| Westport Fuel Systems | 1 | 1 | 1 | 1 | 2.50 |
BorgWarner currently has a consensus price target of $59.14, indicating a potential upside of 11.63%. Westport Fuel Systems has a consensus price target of $6.60, indicating a potential upside of 215.79%. Given Westport Fuel Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Westport Fuel Systems is more favorable than BorgWarner.
Insider and Institutional Ownership
95.7% of BorgWarner shares are held by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are held by institutional investors. 0.6% of BorgWarner shares are held by insiders. Comparatively, 0.8% of Westport Fuel Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
BorgWarner beats Westport Fuel Systems on 10 of the 15 factors compared between the two stocks.
About BorgWarner
BorgWarner Inc., together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging. The company provides power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. It 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 incorporated in 1987 and is headquartered in Auburn Hills, Michigan.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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