Critical Analysis: Sense Technologies (OTCMKTS:SNSGF) vs. BorgWarner (NYSE:BWA)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BorgWarner	$14.17 billion	0.50	$625.00 million	$3.94	8.17
Sense Technologies	N/A	N/A	N/A	N/A	N/A

BorgWarner has higher revenue and earnings than Sense Technologies.

Profitability

This table compares BorgWarner and Sense Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BorgWarner	6.33%	15.51%	6.64%
Sense Technologies	N/A	N/A	N/A

Insider & Institutional Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for BorgWarner and Sense Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BorgWarner	0	6	10	0	2.63
Sense Technologies	0	0	0	0	0.00

BorgWarner currently has a consensus price target of $41.07, suggesting a potential upside of 27.58%. Given BorgWarner’s stronger consensus rating and higher probable upside, equities analysts clearly believe BorgWarner is more favorable than Sense Technologies.

Summary

BorgWarner beats Sense Technologies on 9 of the 9 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 Sense Technologies

Sense Technologies, Inc. develops and markets automotive safety devices that enhance driver awareness of people or obstacles located in vehicle blind spots in the United States. It offers Guardian Alert Doppler awareness system, which warns vehicle drivers of the presence of people or obstacles in blind spots that exist behind their vehicles when backing up. The company markets its Guardian Alert product primarily to automobile and truck dealers, fleet operators, and other after-market automotive industry participants. It also offers ScopeOut, a system of specially designed mirrors that are placed at specific points on automobiles, trucks, sport utility vehicles, or commercial vehicles to provide drivers a complete view behind the vehicle. The company markets its ScopeOut product to department stores and other retailers as an after-market automotive safety product, as well as sells online at sensetech.com. The company was formerly known as Graham Gold Mining Corporation and changed its name to Sense Technologies, Inc. in October 1997. Sense Technologies, Inc. was founded in 1988 and is based in Grand Island, Nebraska.