BorgWarner (NYSE:BWA – Get Free Report) and ChargePoint (NYSE:CHPT – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for BorgWarner and ChargePoint, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BorgWarner | 0 | 6 | 9 | 0 | 2.60 |
| ChargePoint | 3 | 6 | 1 | 0 | 1.80 |
BorgWarner presently has a consensus target price of $74.00, suggesting a potential upside of 16.50%. ChargePoint has a consensus target price of $8.31, suggesting a potential upside of 40.13%. Given ChargePoint’s higher probable upside, analysts clearly believe ChargePoint is more favorable than BorgWarner.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BorgWarner | $14.32 billion | 0.91 | $277.00 million | $1.69 | 37.59 |
| ChargePoint | $415.40 million | 0.35 | -$220.20 million | ($8.68) | -0.68 |
BorgWarner has higher revenue and earnings than ChargePoint. ChargePoint is trading at a lower price-to-earnings ratio than BorgWarner, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BorgWarner and ChargePoint’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BorgWarner | 2.53% | 18.36% | 7.65% |
| ChargePoint | -49.66% | -504.42% | -18.93% |
Volatility & Risk
BorgWarner has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, ChargePoint has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.
Institutional and Insider Ownership
95.7% of BorgWarner shares are held by institutional investors. Comparatively, 37.8% of ChargePoint shares are held by institutional investors. 0.8% of BorgWarner shares are held by insiders. Comparatively, 4.2% of ChargePoint shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
BorgWarner beats ChargePoint on 11 of the 14 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 ChargePoint
ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.
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