Critical Contrast: BorgWarner (NYSE:BWA) vs. U Power (NASDAQ:UCAR)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U Power	$2.78 million	7.67	-$2.72 million	N/A	N/A
BorgWarner	$14.34 billion	0.51	$625.00 million	$2.64	12.11

BorgWarner has higher revenue and earnings than U Power.

Analyst Ratings

This is a summary of current recommendations and price targets for U Power and BorgWarner, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U Power	0	0	0	0	N/A
BorgWarner	0	6	10	0	2.63

BorgWarner has a consensus price target of $41.07, suggesting a potential upside of 28.41%. Given BorgWarner’s higher probable upside, analysts clearly believe BorgWarner is more favorable than U Power.

Volatility & Risk

U Power has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500. Comparatively, BorgWarner has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
U Power	N/A	N/A	N/A
BorgWarner	4.97%	15.50%	6.66%

Insider and Institutional Ownership

13.2% of U Power shares are owned by institutional investors. Comparatively, 95.7% of BorgWarner shares are owned by institutional investors. 0.5% of BorgWarner shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

BorgWarner beats U Power on 9 of the 11 factors compared between the two stocks.

About U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.

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.