PHINIA (NYSE:PHIN) and BorgWarner (NYSE:BWA) Critical Contrast

PHINIA (NYSE:PHIN) and BorgWarner (NYSE:BWA) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares PHINIA and BorgWarner’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PHINIA	N/A	N/A	N/A
BorgWarner	3.94%	14.69%	6.42%

Institutional and Insider Ownership

90.9% of PHINIA shares are owned by institutional investors. Comparatively, 95.7% of BorgWarner shares are owned by institutional investors. 1.5% of PHINIA shares are owned by company insiders. Comparatively, 0.6% of BorgWarner shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for PHINIA and BorgWarner, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PHINIA	0	0	2	0	3.00
BorgWarner	0	7	9	0	2.56

PHINIA currently has a consensus target price of $43.00, suggesting a potential upside of 10.94%. BorgWarner has a consensus target price of $44.05, suggesting a potential upside of 26.46%. Given BorgWarner’s higher possible upside, analysts clearly believe BorgWarner is more favorable than PHINIA.

Earnings and Valuation

This table compares PHINIA and BorgWarner’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PHINIA	$3.50 billion	0.51	$102.00 million	N/A	N/A
BorgWarner	$14.20 billion	0.56	$625.00 million	$2.67	13.04

BorgWarner has higher revenue and earnings than PHINIA.

Dividends

PHINIA pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. BorgWarner pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. BorgWarner pays out 16.5% of its earnings in the form of a dividend.

Summary

BorgWarner beats PHINIA on 9 of the 13 factors compared between the two stocks.

About PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.

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.