Allison Transmission Holdings, Inc. (ALSN) vs BorgWarner Inc. (BWA)

Allison Transmission Holdings, Inc. and BorgWarner Inc. are both Auto Parts companies. Allison Transmission Holdings, Inc. and BorgWarner Inc. are of similar size ($9.6B and $9.5B). Allison Transmission Holdings, Inc. trades at the lower P/E: 16.6× against 19.5×. Allison Transmission Holdings, Inc. grew revenue faster over the last twelve months: 70.8% against 0.40%. Allison Transmission Holdings, Inc. has the higher net margin (11.1% vs 3.36%) and the higher return on invested capital (10.7% vs 7.78%). Both pay a dividend; BorgWarner Inc. yields more (1.42% vs 0.98%). Across the 23 metrics below, Allison Transmission Holdings, Inc. leads on 14 and BorgWarner Inc. on 9.

Valuation

Metric ALSN BWA Auto Parts median
P/E 16.59 19.50 14.81
P/S 1.84 0.67 0.55
P/B 4.89 1.64 1.16
Price to free cash flow 11.64 7.95 10.18
EV/EBITDA 11.91 7.18 7.39
EV/Sales 2.52 0.70 0.67
Earnings yield 6.03% 5.13% 3.46%
Free cash flow yield 8.59% 12.58% 2.74%

Profitability

Metric ALSN BWA Auto Parts median
Gross margin 33.93% 19.60% 22.13%
Operating margin 18.33% 5.41% 3.50%
Net margin 11.12% 3.36% 1.89%
Free cash flow margin 15.85% 8.49% 1.43%
Return on equity 29.74% 7.96% 0.96%
Return on assets 8.15% 3.45% 1.20%
Return on invested capital 10.74% 7.78% 4.41%

Growth

Metric ALSN BWA Auto Parts median
Revenue growth (TTM) 70.84% 0.40% 4.32%
EPS growth (last fiscal year) (11.79%) (14.67%) 5.72%
Revenue growth, 5-year CAGR 7.66% 7.09% 7.66%
Net income growth, 5-year CAGR 15.81% (11.14%) 0.00%

Health

Metric ALSN BWA Auto Parts median
Debt to equity 1.93 0.32 0.43
Current ratio 1.77 1.41 1.73
Net debt to EBITDA 1.38 1.26 1.26

Dividend

Metric ALSN BWA Auto Parts median
Dividend yield 0.98% 1.42% 1.97%
Payout ratio 0.16 0.28 0.27

Size

Metric ALSN BWA Auto Parts median
Market cap 9.62b 9.54b 1.03b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack