BorgWarner (NYSE:BWA) vs. WeRide (NASDAQ:WRD) Head-To-Head Review

WeRide (NASDAQ:WRD) and BorgWarner (NYSE:BWA) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares WeRide and BorgWarner’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WeRide	-329.54%	-24.31%	-22.06%
BorgWarner	0.94%	16.72%	7.02%

Volatility & Risk

WeRide has a beta of 4.32, indicating that its stock price is 332% more volatile than the S&P 500. Comparatively, BorgWarner has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for WeRide and BorgWarner, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	0	4	0	2.60
BorgWarner	0	8	8	1	2.59

WeRide currently has a consensus price target of $13.13, indicating a potential upside of 48.98%. BorgWarner has a consensus price target of $47.00, indicating a potential downside of 2.39%. Given WeRide’s stronger consensus rating and higher possible upside, research analysts plainly believe WeRide is more favorable than BorgWarner.

Valuation & Earnings

This table compares WeRide and BorgWarner”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$49.47 million	57.69	-$350.09 million	($0.84)	-10.49
BorgWarner	$14.09 billion	0.73	$338.00 million	$0.63	76.43

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.

Insider & Institutional Ownership

95.7% of BorgWarner shares are held by institutional investors. 0.6% of BorgWarner shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

BorgWarner beats WeRide on 11 of the 15 factors compared between the two stocks.

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.

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.