BorgWarner (NYSE:BWA – Get Free Report) and Miller Industries (NYSE:MLR – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Risk & Volatility
BorgWarner has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Miller Industries has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Earnings & Valuation
This table compares BorgWarner and Miller Industries”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BorgWarner | $14.32 billion | 1.10 | $277.00 million | $1.69 | 45.31 |
| Miller Industries | $790.27 million | 0.69 | $23.01 million | $1.34 | 35.81 |
BorgWarner has higher revenue and earnings than Miller Industries. Miller Industries is trading at a lower price-to-earnings ratio than BorgWarner, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.7% of BorgWarner shares are held by institutional investors. Comparatively, 79.2% of Miller Industries shares are held by institutional investors. 0.8% of BorgWarner shares are held by insiders. Comparatively, 4.5% of Miller Industries shares are held 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.
Profitability
This table compares BorgWarner and Miller Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BorgWarner | 2.53% | 18.36% | 7.65% |
| Miller Industries | 2.08% | 3.70% | 2.58% |
Analyst Recommendations
This is a breakdown of recent recommendations for BorgWarner and Miller Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BorgWarner | 0 | 7 | 7 | 0 | 2.50 |
| Miller Industries | 0 | 2 | 1 | 0 | 2.33 |
BorgWarner presently has a consensus target price of $71.14, indicating a potential downside of 7.10%. Miller Industries has a consensus target price of $50.00, indicating a potential upside of 4.21%. Given Miller Industries’ higher probable upside, analysts clearly believe Miller Industries is more favorable than BorgWarner.
Dividends
BorgWarner pays an annual dividend of $0.68 per share and has a dividend yield of 0.9%. Miller Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. BorgWarner pays out 40.2% of its earnings in the form of a dividend. Miller Industries pays out 62.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BorgWarner has increased its dividend for 1 consecutive years and Miller Industries has increased its dividend for 2 consecutive years. Miller Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
BorgWarner beats Miller Industries on 12 of the 17 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 Miller Industries
Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.
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