BorgWarner vs Garrett Motion

BorgWarner and Garrett Motion are two leading companies in the automotive industry known for their innovative technologies and products. Both companies specialize in providing advanced turbocharger solutions for various vehicles to enhance performance and fuel efficiency. Investors looking to capitalize on the growing demand for turbochargers in the automotive market may consider investing in BorgWarner and Garrett Motion stocks. While BorgWarner has a strong global presence and diverse product portfolio, Garrett Motion focuses on turbocharger technology and aftermarket solutions, making them both attractive investment options for those interested in the automotive sector.

BorgWarner or Garrett Motion?

When comparing BorgWarner and Garrett Motion, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BorgWarner and Garrett Motion.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BorgWarner has a dividend yield of 1.57%, while Garrett Motion has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BorgWarner reports a 5-year dividend growth of -3.81% year and a payout ratio of 14.17%. On the other hand, Garrett Motion reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BorgWarner P/E ratio at 11.09 and Garrett Motion's P/E ratio at 7.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BorgWarner P/B ratio is 1.30 while Garrett Motion's P/B ratio is -2.51.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BorgWarner has seen a 5-year revenue growth of 0.21%, while Garrett Motion's is -0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BorgWarner's ROE at 12.12% and Garrett Motion's ROE at -33.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $34.89 for BorgWarner and $8.12 for Garrett Motion. Over the past year, BorgWarner's prices ranged from $29.51 to $39.97, with a yearly change of 35.45%. Garrett Motion's prices fluctuated between $6.43 and $10.16, with a yearly change of 58.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.