BorgWarner (NYSE:BWA) vs. Carbon Streaming (OTCMKTS:OFSTF) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BorgWarner	0.94%	16.72%	7.02%
Carbon Streaming	-24,852.70%	-4.10%	-3.94%

Volatility and Risk

BorgWarner has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Carbon Streaming has a beta of -81.73, meaning that its stock price is 8,273% less volatile than the S&P 500.

Institutional and Insider Ownership

95.7% of BorgWarner shares are held by institutional investors. 0.6% of BorgWarner shares are held by insiders. Comparatively, 2.4% of Carbon Streaming shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for BorgWarner and Carbon Streaming, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BorgWarner	0	7	8	0	2.53
Carbon Streaming	0	0	0	0	0.00

BorgWarner currently has a consensus target price of $47.31, indicating a potential downside of 2.32%. Given BorgWarner’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BorgWarner is more favorable than Carbon Streaming.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BorgWarner	$14.09 billion	0.74	$338.00 million	$0.63	76.87
Carbon Streaming	$640,000.00	46.47	-$67.37 million	($0.35)	-1.73

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

Summary

BorgWarner beats Carbon Streaming on 12 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 Carbon Streaming

Carbon Streaming Corporation a carbon credit streaming and royalty company focused on creating shareholder value primarily through the acquisition and sale of carbon credits. It provides capital to carbon projects globally, primarily by entering into or acquiring streaming, royalty or royalty-like arrangements for the purchase of carbon credits. The company was formerly known as Mexivada Mining Corp. and changed its name to Carbon Streaming Corporation in June 2020. Carbon Streaming Corporation was incorporated in 2004 and is headquartered in Burlington, Canada.