BorgWarner vs Lear
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KIRA’s take AI analyst
I put BorgWarner and Lear side by side, using each one’s latest annual report. Here is what stands out:
- Lear is the larger business, with $23.3B of revenue in fiscal 2025 against $14.3B for BorgWarner, about 1.6 times as much.
- BorgWarner grew revenue faster (1.6%, against −0.2%).
- BorgWarner turned more of its sales into free cash flow (8.2% FCF margin, against 2.3%).
- Lear earned a higher return on the capital invested in it (8.9%, against 4.6%).
- Investors pay more for each dollar of BorgWarner’s earnings: a P/E of 27.2x against 10.9x for Lear.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
BorgWarner
BWA
6/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF margin
Lear
LEA
4/11
Return on capitalReturn on equityNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | BWA FY25 | LEA FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.4B | $5.9B |
| Revenue | $14.3B | $23.3B |
| Free cash flow | $1.2B | $527M |
| Net income | $277M | $437M |
| Growth | ||
| Revenue growth | 1.6% | −0.2% |
| 5-year growth | 7.1% | 6.4% |
| Share count change | −3.7% | −5.1% |
| Profitability | ||
| Gross margin | 18.7% | 6.5% |
| Operating margin | 3.7% | 3.3% |
| Net margin | 1.9% | 1.9% |
| FCF margin | 8.2% | 2.3% |
| Return on capital | 4.6% | 8.9% |
| Return on equity | 5.1% | 9.2% |
| Balance sheet | ||
| Net debt | $1.6B | $1.7B |
| Net debt / EBITDA | 1.3x | 1.2x |
| Dividends and buybacks | $627M | $490M |
| Valuation & quality | ||
| P/E | 27.2x | 10.9x |
| Piotroski F-score | 7 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.