Head-To-Head Analysis: Camping World (NYSE:CWH) & BorgWarner (NYSE:BWA)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camping World	$6.10 billion	0.21	-$38.64 million	($0.93)	-13.21
BorgWarner	$14.32 billion	0.85	$277.00 million	$1.25	47.11

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Camping World	-0.85%	3.80%	0.37%
BorgWarner	1.93%	17.89%	7.51%

Dividends

Camping World pays an annual dividend of $0.50 per share and has a dividend yield of 4.1%. BorgWarner pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Camping World pays out -53.8% of its earnings in the form of a dividend. BorgWarner pays out 54.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Camping World has increased its dividend for 1 consecutive years and BorgWarner has increased its dividend for 1 consecutive years. Camping World is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

52.5% of Camping World shares are held by institutional investors. Comparatively, 95.7% of BorgWarner shares are held by institutional investors. 35.6% of Camping World shares are held by insiders. Comparatively, 0.5% of BorgWarner shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camping World	1	2	8	0	2.64
BorgWarner	1	6	8	0	2.47

Camping World presently has a consensus price target of $17.67, indicating a potential upside of 43.81%. BorgWarner has a consensus price target of $59.14, indicating a potential upside of 0.44%. Given Camping World’s stronger consensus rating and higher possible upside, research analysts plainly believe Camping World is more favorable than BorgWarner.

Volatility & Risk

Camping World has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, BorgWarner has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Summary

BorgWarner beats Camping World on 9 of the 15 factors compared between the two stocks.

About Camping World

Camping World Holdings, Inc., together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel planning and directories; and publications, as well as operates the Coast to Coast Resorts and Good Sam Campgrounds. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; various RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersports equipment and supplies, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. Additionally, the company facilitates an RV rental platform that connects travelers with RV owners; and designs, manufactures, and distributes RV and camping furniture, as well as a range of outdoor products and accessories. It serves customers through dealerships, and online and e-commerce platforms. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.

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.