ALSN
Allison Transmission Holdings, Inc.
Auto - Parts
Market Cap$10.32B
5Y Perf.+229.2%
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Stock Comparison
ALSN vs BWA
Revenue, margins, valuation, and 5-year total return — side by side.
BWA
BorgWarner Inc.
Auto - Parts
Market Cap$12.64B
5Y Perf.+116.8%
ALSN vs BWA — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ALSN | BWA |
|---|---|---|
| Industry | Auto - Parts | Auto - Parts |
| Market Cap | $10.32B | $12.64B |
| Revenue (TTM) | $3.65B | $14.33B |
| Net Income (TTM) | $543M | $362M |
| Gross Margin | 40.8% | 18.9% |
| Operating Margin | 24.1% | 9.7% |
| Forward P/E | 14.1x | 11.8x |
| Total Debt | $2.92B | $4.18B |
| Cash & Equiv. | $1.50B | $2.31B |
ALSN vs BWA — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ALSN
BWA
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Allison Transmissio… (ALSN) | 100 | 329.2 | +229.2% |
| BorgWarner Inc. (BWA) | 100 | 216.8 | +116.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ALSN vs BWA
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: BWA leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Allison Transmission Holdings, Inc. is the stronger pick specifically for profitability and margin quality and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
ALSN
Allison Transmission Holdings, Inc.
The Long-Run Compounder
ALSN is the clearest fit if your priority is long-term compounding.
- 377.7% 10Y total return vs BWA's 124.6%
- 14.9% margin vs BWA's 2.5%
- 0.9% yield, 6-year raise streak, vs BWA's 0.9%
Best for: long-term compounding
BWA
BorgWarner Inc.
The Income Pick
BWA carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 1 yrs, beta 1.04, yield 0.9%
- Rev growth 1.7%, EPS growth -14.7%, 3Y rev CAGR 4.3%
- Lower volatility, beta 1.04, Low D/E 74.4%, current ratio 2.07x
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | BWA | 1.7% revenue growth vs ALSN's -6.7% |
| Value | BWA | Lower P/E (11.8x vs 14.1x) |
| Quality / Margins | ALSN | 14.9% margin vs BWA's 2.5% |
| Stability / Safety | BWA | Beta 1.04 vs ALSN's 1.08, lower leverage |
| Dividends | ALSN | 0.9% yield, 6-year raise streak, vs BWA's 0.9% |
| Momentum (1Y) | BWA | +98.9% vs ALSN's +26.9% |
| Efficiency (ROA) | ALSN | 8.4% ROA vs BWA's 2.6%, ROIC 22.2% vs 12.9% |
ALSN vs BWA — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2023
ALSN vs BWA — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLALSNLAGGINGBWA
BWABorgWarner Inc.
1leads
ALSNAllison Transmission …
3leads
6 Total Categories
CATEGORYLEADERvs BWAMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ALSN5/6
Valuation MetricsMultiples, price ratios, and targets
BWA5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ALSN7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ALSN4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
ALSN leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
BWA is the larger business by revenue, generating $14.3B annually — 3.9x ALSN's $3.6B. ALSN is the more profitable business, keeping 14.9% of every revenue dollar as net income compared to BWA's 2.5%. On growth, ALSN holds the edge at +83.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ALSNAllison Transmiss… | BWABorgWarner Inc. |
|---|---|---|
| RevenueTrailing 12 months | $3.6B | $14.3B |
| EBITDAEarnings before interest/tax | $970M | $2.1B |
| Net IncomeAfter-tax profit | $543M | $362M |
| Free Cash FlowCash after capex | $713M | $1.4B |
| Gross MarginGross profit ÷ Revenue | +40.8% | +18.9% |
| Operating MarginEBIT ÷ Revenue | +24.1% | +9.7% |
| Net MarginNet income ÷ Revenue | +14.9% | +2.5% |
| FCF MarginFCF ÷ Revenue | +19.5% | +10.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +83.6% | +0.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -40.4% | +61.1% |
ALSN leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
BWA leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 16.9x trailing earnings, ALSN trades at a 65% valuation discount to BWA's 47.9x P/E. On an enterprise value basis, BWA's 7.1x EV/EBITDA is more attractive than ALSN's 10.7x.
| Metric | ALSNAllison Transmiss… | BWABorgWarner Inc. |
|---|---|---|
| Market CapShares × price | $10.3B | $12.6B |
| Enterprise ValueMkt cap + debt − cash | $11.7B | $14.5B |
| Trailing P/EPrice ÷ TTM EPS | 16.94x | 47.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.10x | 11.83x |
| PEG RatioP/E ÷ EPS growth rate | 0.74x | — |
| EV / EBITDAEnterprise value multiple | 10.71x | 7.10x |
| Price / SalesMarket cap ÷ Revenue | 3.43x | 0.88x |
| Price / BookPrice ÷ Book value/share | 5.65x | 2.36x |
| Price / FCFMarket cap ÷ FCF | 15.91x | 10.72x |
BWA leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
ALSN leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
ALSN delivers a 29.5% return on equity — every $100 of shareholder capital generates $29 in annual profit, vs $6 for BWA. BWA carries lower financial leverage with a 0.74x debt-to-equity ratio, signaling a more conservative balance sheet compared to ALSN's 1.56x. On the Piotroski fundamental quality scale (0–9), BWA scores 8/9 vs ALSN's 6/9, reflecting strong financial health.
| Metric | ALSNAllison Transmiss… | BWABorgWarner Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +29.5% | +6.2% |
| ROA (TTM)Return on assets | +8.4% | +2.6% |
| ROICReturn on invested capital | +22.2% | +12.9% |
| ROCEReturn on capital employed | +18.6% | +12.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 1.56x | 0.74x |
| Net DebtTotal debt minus cash | $1.4B | $1.9B |
| Cash & Equiv.Liquid assets | $1.5B | $2.3B |
| Total DebtShort + long-term debt | $2.9B | $4.2B |
| Interest CoverageEBIT ÷ Interest expense | 64.20x | 14.17x |
ALSN leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ALSN leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ALSN five years ago would be worth $28,577 today (with dividends reinvested), compared to $13,758 for BWA. Over the past 12 months, BWA leads with a +98.9% total return vs ALSN's +26.9%. The 3-year compound annual growth rate (CAGR) favors ALSN at 38.3% vs BWA's 16.6% — a key indicator of consistent wealth creation.
| Metric | ALSNAllison Transmiss… | BWABorgWarner Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +25.8% | +31.8% |
| 1-Year ReturnPast 12 months | +26.9% | +98.9% |
| 3-Year ReturnCumulative with dividends | +164.5% | +58.7% |
| 5-Year ReturnCumulative with dividends | +185.8% | +37.6% |
| 10-Year ReturnCumulative with dividends | +377.7% | +124.6% |
| CAGR (3Y)Annualised 3-year return | +38.3% | +16.6% |
ALSN leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — ALSN and BWA each lead in 1 of 2 comparable metrics.
Risk & Volatility
BWA is the less volatile stock with a 1.04 beta — it tends to amplify market swings less than ALSN's 1.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ALSNAllison Transmiss… | BWABorgWarner Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.08x | 1.04x |
| 52-Week HighHighest price in past year | $137.42 | $70.08 |
| 52-Week LowLowest price in past year | $76.01 | $30.62 |
| % of 52W HighCurrent price vs 52-week peak | +90.4% | +87.5% |
| RSI (14)Momentum oscillator 0–100 | 43.3 | 59.9 |
| Avg Volume (50D)Average daily shares traded | 802K | 2.3M |
Evenly matched — ALSN and BWA each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — ALSN and BWA each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ALSN as "Hold" and BWA as "Buy". Consensus price targets imply 13.8% upside for BWA (target: $70) vs -6.6% for ALSN (target: $116). For income investors, BWA offers the higher dividend yield at 0.90% vs ALSN's 0.86%.
| Metric | ALSNAllison Transmiss… | BWABorgWarner Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $116.00 | $69.80 |
| # AnalystsCovering analysts | 29 | 38 |
| Dividend YieldAnnual dividend ÷ price | +0.9% | +0.9% |
| Dividend StreakConsecutive years of raises | 6 | 1 |
| Dividend / ShareAnnual DPS | $1.07 | $0.55 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.2% | +4.0% |
Evenly matched — ALSN and BWA each lead in 1 of 2 comparable metrics.
Key Takeaway
ALSN leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). BWA leads in 1 (Valuation Metrics). 2 tied.
Best OverallAllison Transmission Holdin… (ALSN)Leads 3 of 6 categories
Loading custom metrics...
ALSN vs BWA: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ALSN or BWA a better buy right now?
For growth investors, BorgWarner Inc.
(BWA) is the stronger pick with 1. 7% revenue growth year-over-year, versus -6. 7% for Allison Transmission Holdings, Inc. (ALSN). Allison Transmission Holdings, Inc. (ALSN) offers the better valuation at 16. 9x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate BorgWarner Inc. (BWA) a "Buy" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ALSN or BWA?
On trailing P/E, Allison Transmission Holdings, Inc.
(ALSN) is the cheapest at 16. 9x versus BorgWarner Inc. at 47. 9x. On forward P/E, BorgWarner Inc. is actually cheaper at 11. 8x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — ALSN or BWA?
Over the past 5 years, Allison Transmission Holdings, Inc.
(ALSN) delivered a total return of +185. 8%, compared to +37. 6% for BorgWarner Inc. (BWA). Over 10 years, the gap is even starker: ALSN returned +377. 7% versus BWA's +124. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ALSN or BWA?
By beta (market sensitivity over 5 years), BorgWarner Inc.
(BWA) is the lower-risk stock at 1. 04β versus Allison Transmission Holdings, Inc. 's 1. 08β — meaning ALSN is approximately 4% more volatile than BWA relative to the S&P 500. On balance sheet safety, BorgWarner Inc. (BWA) carries a lower debt/equity ratio of 74% versus 156% for Allison Transmission Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ALSN or BWA?
By revenue growth (latest reported year), BorgWarner Inc.
(BWA) is pulling ahead at 1. 7% versus -6. 7% for Allison Transmission Holdings, Inc. (ALSN). On earnings-per-share growth, the picture is similar: Allison Transmission Holdings, Inc. grew EPS -11. 8% year-over-year, compared to -14. 7% for BorgWarner Inc.. Over a 3-year CAGR, BWA leads at 4. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ALSN or BWA?
Allison Transmission Holdings, Inc.
(ALSN) is the more profitable company, earning 20. 7% net margin versus 1. 9% for BorgWarner Inc. — meaning it keeps 20. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALSN leads at 32. 3% versus 9. 2% for BWA. At the gross margin level — before operating expenses — ALSN leads at 48. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ALSN or BWA more undervalued right now?
On forward earnings alone, BorgWarner Inc.
(BWA) trades at 11. 8x forward P/E versus 14. 1x for Allison Transmission Holdings, Inc. — 2. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BWA: 13. 8% to $69. 80.
08Which pays a better dividend — ALSN or BWA?
All stocks in this comparison pay dividends.
BorgWarner Inc. (BWA) offers the highest yield at 0. 9%, versus 0. 9% for Allison Transmission Holdings, Inc. (ALSN).
09Is ALSN or BWA better for a retirement portfolio?
For long-horizon retirement investors, Allison Transmission Holdings, Inc.
(ALSN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 08), 0. 9% yield, +377. 7% 10Y return). Both have compounded well over 10 years (ALSN: +377. 7%, BWA: +124. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ALSN and BWA?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: ALSN is a mid-cap deep-value stock; BWA is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(ALSN: 83.6% · BWA: 0.5%)Net Margin>
%
(ALSN: 14.9% · BWA: 2.5%)P/E Ratio<
x
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