Reviewing ChargePoint (NYSE:CHPT) and BorgWarner (NYSE:BWA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BorgWarner	2.53%	18.36%	7.65%
ChargePoint	-49.66%	-504.42%	-18.93%

Earnings and Valuation

This table compares BorgWarner and ChargePoint”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BorgWarner	$14.32 billion	0.91	$277.00 million	$1.69	37.59
ChargePoint	$415.40 million	0.35	-$220.20 million	($8.68)	-0.68

BorgWarner has higher revenue and earnings than ChargePoint. ChargePoint is trading at a lower price-to-earnings ratio than BorgWarner, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.7% of BorgWarner shares are owned by institutional investors. Comparatively, 37.8% of ChargePoint shares are owned by institutional investors. 0.8% of BorgWarner shares are owned by company insiders. Comparatively, 4.2% of ChargePoint shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for BorgWarner and ChargePoint, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BorgWarner	0	6	9	0	2.60
ChargePoint	3	6	1	0	1.80

BorgWarner currently has a consensus target price of $74.00, suggesting a potential upside of 16.50%. ChargePoint has a consensus target price of $8.31, suggesting a potential upside of 40.13%. Given ChargePoint’s higher probable upside, analysts plainly believe ChargePoint is more favorable than BorgWarner.

Volatility and Risk

BorgWarner has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, ChargePoint has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Summary

BorgWarner beats ChargePoint on 11 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 ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.