BorgWarner (NYSE:BWA – Get Free Report) and WeRide (NASDAQ:WRD – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
Profitability
This table compares BorgWarner and WeRide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BorgWarner | 0.94% | 16.72% | 7.02% |
| WeRide | -329.54% | -24.31% | -22.06% |
Institutional & Insider Ownership
95.7% of BorgWarner shares are owned by institutional investors. 0.6% of BorgWarner shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BorgWarner | $14.09 billion | 0.73 | $338.00 million | $0.63 | 76.43 |
| WeRide | $49.47 million | 57.69 | -$350.09 million | ($0.84) | -10.49 |
BorgWarner has higher revenue and earnings than WeRide. WeRide is trading at a lower price-to-earnings ratio than BorgWarner, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for BorgWarner and WeRide, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BorgWarner | 0 | 8 | 8 | 1 | 2.59 |
| WeRide | 1 | 0 | 4 | 0 | 2.60 |
BorgWarner currently has a consensus target price of $47.00, suggesting a potential downside of 2.39%. WeRide has a consensus target price of $13.13, suggesting a potential upside of 48.98%. Given WeRide’s stronger consensus rating and higher possible upside, analysts plainly believe WeRide is more favorable than BorgWarner.
Risk & Volatility
BorgWarner has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, WeRide has a beta of 4.32, meaning that its stock price is 332% more volatile than the S&P 500.
Summary
BorgWarner beats WeRide on 11 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 WeRide
WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.
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