Head-To-Head Analysis: BorgWarner (NYSE:BWA) vs. Solid Power (NASDAQ:SLDP)

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

Volatility and Risk

BorgWarner has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for BorgWarner and Solid Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BorgWarner	0	7	8	0	2.53
Solid Power	1	1	2	0	2.25

BorgWarner presently has a consensus target price of $63.23, indicating a potential upside of 20.44%. Solid Power has a consensus target price of $7.00, indicating a potential upside of 150.45%. Given Solid Power’s higher probable upside, analysts clearly believe Solid Power is more favorable than BorgWarner.

Valuation and Earnings

This table compares BorgWarner and Solid Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BorgWarner	$14.32 billion	0.76	$277.00 million	$1.25	42.00
Solid Power	$17.91 million	34.42	-$93.41 million	($0.50)	-5.59

BorgWarner has higher revenue and earnings than Solid Power. Solid Power 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 Solid Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BorgWarner	1.93%	17.89%	7.51%
Solid Power	-429.54%	-23.88%	-22.13%

Insider & Institutional Ownership

95.7% of BorgWarner shares are held by institutional investors. Comparatively, 33.7% of Solid Power shares are held by institutional investors. 0.5% of BorgWarner shares are held by insiders. Comparatively, 4.9% of Solid Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

BorgWarner beats Solid Power on 10 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 Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.