HELLA GmbH & Co. KGaA (OTCMKTS:HLKHF) & BorgWarner (NYSE:BWA) Financial Survey

HELLA GmbH & Co. KGaA (OTCMKTS:HLKHF) and BorgWarner (NYSE:BWA) are both consumer cyclical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Insider and Institutional Ownership

95.7% of BorgWarner shares are owned by institutional investors. 0.5% of BorgWarner shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares HELLA GmbH & Co. KGaA and BorgWarner’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HELLA GmbH & Co. KGaA	N/A	N/A	N/A
BorgWarner	4.97%	15.50%	6.66%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for HELLA GmbH & Co. KGaA and BorgWarner, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HELLA GmbH & Co. KGaA	0	0	0	0	N/A
BorgWarner	0	5	10	0	2.67

BorgWarner has a consensus target price of $41.07, suggesting a potential upside of 25.82%. Given BorgWarner’s higher possible upside, analysts plainly believe BorgWarner is more favorable than HELLA GmbH & Co. KGaA.

Earnings & Valuation

This table compares HELLA GmbH & Co. KGaA and BorgWarner’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HELLA GmbH & Co. KGaA	N/A	N/A	N/A	N/A	N/A
BorgWarner	$14.34 billion	0.52	$625.00 million	$2.64	12.36

BorgWarner has higher revenue and earnings than HELLA GmbH & Co. KGaA.

Summary

BorgWarner beats HELLA GmbH & Co. KGaA on 8 of the 8 factors compared between the two stocks.

About HELLA GmbH & Co. KGaA

HELLA GmbH & Co. KGaA, together with its subsidiaries, develops, manufactures, and sells lighting systems and electronic components for automotive industry worldwide. It operates through three segments: Lighting, Electronics, and Lifecycle Solutions. The Lighting segment offers headlamps, rear combination lamps, and car body lighting including radomes, illuminated logos, and front phygital shields, as well as interior lighting products. The Electronics segment provides automated driving products, such as radar sensors and steering electronics; sensors and actuators; body electronics, including lighting electronics and access systems; and energy management products. The Lifecycle Solutions segment offers vehicle diagnostics, emissions testing, battery testing, light adjustment, and calibration service, as well as data-based services; and sells wear parts, spare parts, and accessories to dealers and independent workshops. This segment develops, manufactures, and distributes lighting and electronic products for special vehicles comprising construction and agricultural machinery, buses, and motor homes, as well as marine sectors. The company was formerly known as HELLA KGaA Hueck & Co. and changed its name to HELLA GmbH & Co. KGaA in October 2017. HELLA GmbH & Co. KGaA was founded in 1899 and is headquartered in Lippstadt, Germany. HELLA GmbH & Co. KGaA operates as a subsidiary of Forvia Germany Gmbh.

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.