BorgWarner (NYSE:BWA) versus HELLA GmbH & Co. KGaA (OTCMKTS:HLKHF) Head-To-Head Survey

BorgWarner (NYSE:BWA) and HELLA GmbH & Co. KGaA (OTCMKTS:HLKHF) are both consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

95.7% of BorgWarner shares are held by institutional investors. 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 stock will outperform the market over the long term.

Profitability

This table compares BorgWarner and HELLA GmbH & Co. KGaA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BorgWarner	4.97%	15.50%	6.66%
HELLA GmbH & Co. KGaA	N/A	N/A	N/A

Valuation and Earnings

This table compares BorgWarner and HELLA GmbH & Co. KGaA’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BorgWarner	$14.34 billion	0.50	$625.00 million	$2.64	11.81
HELLA GmbH & Co. KGaA	N/A	N/A	N/A	N/A	N/A

BorgWarner has higher revenue and earnings than HELLA GmbH & Co. KGaA.

Analyst Ratings

This is a summary of recent ratings for BorgWarner and HELLA GmbH & Co. KGaA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BorgWarner	0	7	10	0	2.59
HELLA GmbH & Co. KGaA	0	0	0	0	N/A

BorgWarner currently has a consensus price target of $41.41, indicating a potential upside of 32.77%. Given BorgWarner’s higher probable upside, analysts plainly believe BorgWarner is more favorable than HELLA GmbH & Co. KGaA.

Summary

BorgWarner beats HELLA GmbH & Co. KGaA on 8 of the 8 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 HELLA GmbH & Co. KGaA

HELLA GmbH & Co. KGaA, together with its subsidiaries, develops, manufactures, and sells lighting systems and electronic components for automotive industry worldwide. It operates through three segments: Lighting, Electronics, and Lifecycle Solutions. The Lighting segment offers headlamps, rear combination lamps, and car body lighting including radomes, illuminated logos, and front phygital shields, as well as interior lighting products. The Electronics segment provides automated driving products, such as radar sensors and steering electronics; sensors and actuators; body electronics, including lighting electronics and access systems; and energy management products. The Lifecycle Solutions segment offers vehicle diagnostics, emissions testing, battery testing, light adjustment, and calibration service, as well as data-based services; and sells wear parts, spare parts, and accessories to dealers and independent workshops. This segment develops, manufactures, and distributes lighting and electronic products for special vehicles comprising construction and agricultural machinery, buses, and motor homes, as well as marine sectors. The company was formerly known as HELLA KGaA Hueck & Co. and changed its name to HELLA GmbH & Co. KGaA in October 2017. HELLA GmbH & Co. KGaA was founded in 1899 and is headquartered in Lippstadt, Germany. HELLA GmbH & Co. KGaA operates as a subsidiary of Forvia Germany Gmbh.