BorgWarner Inc. (BWA) vs Lear Corporation (LEA)

BorgWarner Inc. and Lear Corporation are both Auto Parts companies. BorgWarner Inc. is the larger, with a market value of $12.1B against $5.9B — 2.1× the size. Lear Corporation trades at the lower P/E: 11.4× against 30.4×. Lear Corporation grew revenue faster over the last twelve months: 3.54% against 2.16%. BorgWarner Inc. has the higher net margin (2.89% vs 2.35%) and the lower return on invested capital (6.20% vs 7.73%). Both pay a dividend; Lear Corporation yields more (2.33% vs 1.85%). Across the 23 metrics below, Lear Corporation leads on 17 and BorgWarner Inc. on 6.

Valuation

Metric BWA LEA Auto Parts median
P/E 30.36 11.44 17.92
P/S 0.87 0.26 0.64
P/B 2.15 1.16 1.15
Price to free cash flow 9.69 7.27 12.82
EV/EBITDA 9.94 5.11 7.66
EV/Sales 0.97 0.33 0.73
Earnings yield 3.29% 8.74% 2.73%
Free cash flow yield 10.31% 13.76% 3.47%

Profitability

Metric BWA LEA Auto Parts median
Gross margin 19.47% 6.86% 22.64%
Operating margin 4.99% 3.67% 3.67%
Net margin 2.89% 2.35% 1.68%
Free cash flow margin 8.95% 3.58% 2.31%
Return on equity 6.99% 10.55% 2.35%
Return on assets 2.93% 3.59% 0.89%
Return on invested capital 6.20% 7.73% 4.55%

Growth

Metric BWA LEA Auto Parts median
Revenue growth (TTM) 2.16% 3.54% 5.00%
EPS growth (last fiscal year) (14.67%) (9.14%) —
Revenue growth, 5-year CAGR 7.09% 6.41% 7.78%
Net income growth, 5-year CAGR (11.14%) 22.48% 0.00%

Health

Metric BWA LEA Auto Parts median
Debt to equity 0.67 0.51 0.38
Current ratio 2.13 1.31 1.78
Net debt to EBITDA 1.26 1.16 1.26

Dividend

Metric BWA LEA Auto Parts median
Dividend yield 1.85% 2.33% 2.37%
Payout ratio 0.17 0.35 0.00

Size

Metric BWA LEA Auto Parts median
Market cap 12.06b 5.86b 914.31m

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