BorgWarnerPearson

BorgWarner vs Pearson

This page compares BorgWarner Inc. and Pearson plc, describing their business models, financial performance, and market context to help readers understand how each operates within its sector. The anal...

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Auto Suppliers (Stellantis Beneficiaries) May Gain

Auto Suppliers (Stellantis Beneficiaries) May Gain

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Published: October 15, 2025

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Detroit Auto: Could Tariff Changes Drive Gains?

Detroit Auto: Could Tariff Changes Drive Gains?

Reports of potential U.S. tariff relief for domestically produced vehicles have caused a surge in the stock prices of major Detroit automakers. This policy shift could boost the profitability of U.S.-based car manufacturers and their parts suppliers, creating a favorable investment landscape.

Published: October 5, 2025

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EV Stocks (Beyond China) After Berkshire BYD Exit

EV Stocks (Beyond China) After Berkshire BYD Exit

Warren Buffett's Berkshire Hathaway has sold its entire stake in Chinese EV giant BYD, signaling a potential shift in sentiment for the sector. This creates a potential opportunity for other global automakers and their suppliers as investors may look for alternatives in the competitive EV landscape.

Published: September 24, 2025

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EV Slowdown Stocks | Automaker Pivot Opportunities

EV Slowdown Stocks | Automaker Pivot Opportunities

Following Stellantis's cancellation of its electric Ram pickup due to slowing EV demand, a new investment opportunity emerges. This theme focuses on automakers that are strategically pivoting to hybrid and traditional models to meet current market realities.

Published: September 14, 2025

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American Autos: Driving Past Tariffs

American Autos: Driving Past Tariffs

Volkswagen's profit warning due to U.S. tariffs highlights the financial strain on foreign automakers. This situation creates a competitive edge for American car manufacturers and domestic parts suppliers who are not subject to these import duties.

Published: July 26, 2025

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Shifting Gears: Competitors Capitalize On Tariff Headwinds

Shifting Gears: Competitors Capitalize On Tariff Headwinds

Volkswagen has lowered its profit outlook after U.S. tariffs and restructuring costs caused a significant drop in earnings. This creates a potential opening for competing U.S. and Asian automakers to gain a competitive edge in the market.

Published: July 25, 2025

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U.S. Auto's Tariff Shield

U.S. Auto's Tariff Shield

Volkswagen has lowered its financial outlook, citing the heavy impact of U.S. import tariffs. This creates a potential advantage for automakers and parts suppliers with significant manufacturing operations within the United States.

Published: July 25, 2025

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U.S. Auto Tariff Shield: Domestic Winners

U.S. Auto Tariff Shield: Domestic Winners

This carefully selected group of stocks represents American automotive companies positioned to benefit from U.S. tariffs on imported vehicles. These domestic manufacturers and suppliers have a competitive pricing advantage that could lead to increased market share and profits.

Published: July 20, 2025

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European Auto Surge

European Auto Surge

Discover a carefully selected group of automotive stocks positioned to benefit from Europe's surprisingly strong vehicle demand. Professional analysts have curated these companies from across the auto value chain to give you exposure to this regional growth story.

Published: July 11, 2025

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Auto Parts Overhaul

Auto Parts Overhaul

This carefully selected group of stocks is positioned to benefit from Ford's massive recall of over 850,000 vehicles. As automakers seek more reliable parts suppliers and consumers look for trusted alternatives, these companies could capture significant market share and new business opportunities.

Published: July 11, 2025

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SRT Revival: Performance Parts

SRT Revival: Performance Parts

Stellantis is bringing back its legendary SRT performance division, creating exciting opportunities throughout the automotive supply chain. This collection features carefully selected stocks of parts makers and retailers positioned to benefit from this high-performance resurgence.

Published: July 3, 2025

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Fallout from Stellantis Recall

Fallout from Stellantis Recall

When one automotive giant faces challenges, others may find opportunity. This collection features carefully selected stocks of competing automakers and parts suppliers positioned to benefit from Stellantis's safety investigation. Each company was handpicked by our analysts to capture this market shift.

Published: July 3, 2025

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Automotive

Automotive

Find a car stock to fuel your investment strategy ๐ŸŽ. This collection brings together carefully selected automotive companies, from traditional manufacturers to electric vehicle pioneers, curated by professional analysts to help you navigate this transformative industry.

Published: May 14, 2025

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Investment Analysis

Pros

  • BorgWarner secured multiple new business awards supporting long-term profitable growth despite a slight decrease in net sales due to market production declines.
  • Strong financial performance with adjusted earnings per share of $1.24 in Q3 2025 and a 39.4% net profit margin for the year.
  • Strategic pivot towards electric vehicle technologies while leveraging strong positions in combustion and hybrid powertrain segments.

Considerations

  • Net earnings declined significantly from $213 million in Q1 2024 to $157 million in Q1 2025, reflecting margin pressure and market challenges.
  • Shares trade at a high price-to-earnings ratio around 40.9x and at a significant premium compared to fair value estimates, indicating valuation risk.
  • Exposure to slower-than-expected EV transition may delay full benefits from electrification investments and maintain dependency on traditional powertrains.

Pros

  • Pearson has a leading market position in education, benefitting from ongoing demand for digital learning and assessment products.
  • The company has been focusing on digital transformation and subscription-based offerings to generate recurring revenue streams.
  • Strong geographic diversification across developed and emerging markets provides balanced growth potential.

Considerations

  • Pearson faces challenges from changes in educational budgets and policies which can impact revenue visibility and growth.
  • The transition from print to digital has pressure on legacy segments, requiring continuous investment that weighs on margins.
  • Competition from new digital education entrants and free online resources intensifies pricing pressure and market share risks.

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