Which Is a Better Investment, BorgWarner Inc. or Fox Factory Holding Corp Stock?

By Cynthia McLaughlin
September 05, 2026
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Sifting through countless of stocks in the Automobile Components industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in BorgWarner Inc. or Fox Factory Holding Corp. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how BorgWarner Inc. and Fox Factory Holding Corp. compare based on key financial metrics to determine which better meets your investment needs.

About BorgWarner Inc. and Fox Factory Holding Corp.

BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers; hydraulic controls products for automatic transmissions, such as electro-hydraulic solenoids for standard and hydraulic systems, transmission solenoid modules and dual clutch hydraulic control modules; and torque management products comprising transfer cases and couplings; electronic limited slip differentials, electric torque vectoring products, and axle disconnect systems. In addition, it offers power electronics, including inverters, onboard chargers, DC/DC converters, and combination boxes; rotating electric machines comprising eMotors and generators; fully integrated drive modules consisting of inverters and gear reducers; and electronic controls, such as engine control units, transmission control units, battery management systems, propulsion controllers, and domain controllers. Further, the company provides battery and charging systems, including nickel manganese cobalt battery packs and lithium iron phosphate battery packs. BorgWarner Inc. was formerly known as Borg-Warner Automotive, Inc. The company was founded in 1928 and is headquartered in Auburn Hills, Michigan.

Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and systems in North America, Europe, Asia, and internationally. It operates through Powered Vehicles Group (PVG), Aftermarket Applications Group (AAG), and Specialty Sports Group (SSG) segments. The company offers powered vehicle products for off-road vehicles and trucks, side-by-sides, on-road vehicles with and without off-road capabilities, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles; aftermarket truck suspension components, including two-inch bolt-on shocks and position sensitive internal bypass shocks; and suspension systems, as well as motorcycle shocks, forks, cushioning, and hydraulic components. It also provides lift kits and components with shock products; aftermarket accessory packages for trucks; suspension tuning services; wheels, off-road tires, and accessories; superchargers, interior accessories, tires, lighting, and body enhancements; and mid-end and high-end front fork and rear suspension products. In addition, the company offers mountain and gravel bike wheels; cranks, chainrings, pedals, bars, stems, and seat posts; and baseball and softball products comprising metal and wood bats, apparel and accessories, batting and fielding gloves, and bags and protective equipment. Further, it provides aftermarket applications products; upfitting products; and mountain bikes, e-bikes, and gravel bikes. The company sells its products to OEMs through dealers, distributors, and direct-to-consumer channels under the FOX, Marzocchi, Race Face, Easton Cycling, Marucci, BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Fox Factory Vehicles, Black Widow, Rocky Ridge, Outside Van, Custom Wheel House, Method Race Wheels, Badlander, Black Ops, Harley-Davidson, and Shelby American brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.

Latest Automobile Components and BorgWarner Inc., Fox Factory Holding Corp. Stock News

As of September 4, 2026, BorgWarner Inc. had a $13.8 billion market capitalization, compared to the Automobile Components median of $2.7 million. BorgWarner Inc.’s stock is up 49.9% in 2026, up 5.4% in the previous five trading days and up 54.03% in the past year.

Currently, BorgWarner Inc.’s price-earnings ratio is 34.5. BorgWarner Inc.’s trailing 12-month revenue is $14.3 billion with a 2.9% net profit margin. Year-over-year quarterly sales growth most recently was 0.3%. Analysts expect adjusted earnings to reach $5.220 per share for the current fiscal year. BorgWarner Inc. currently has a 1.0% dividend yield.

As of September 4, 2026, Fox Factory Holding Corp. had a $904.5 million market cap, putting it in the 44th percentile of all stocks. Fox Factory Holding Corp.’s stock is up 25.8% in 2026, up 4.7% in the previous five trading days and down 24.04% in the past year.

Currently, Fox Factory Holding Corp. does not have a price-earnings ratio. Fox Factory Holding Corp.’s trailing 12-month revenue is $1.5 billion with a -20.4% net profit margin. Year-over-year quarterly sales growth most recently was -4.5%. Analysts expect adjusted earnings to reach $1.592 per share for the current fiscal year. Fox Factory Holding Corp. does not currently pay a dividend.

How We Compare BorgWarner Inc. and Fox Factory Holding Corp. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at BorgWarner Inc. and Fox Factory Holding Corp.’s stock grades to see how they measure up against one another.

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BorgWarner Inc. and Fox Factory Holding Corp. Stock Value Grades

Company Ticker Value
BorgWarner Inc. BWA B
Fox Factory Holding Corp. FOXF D

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

BorgWarner Inc. has a Value Score of 72, which is Value. Fox Factory Holding Corp. has a Value Score of 40, which is Expensive.

The Value Stock Winner: BorgWarner Inc.

As you can clearly see from the Value Grade breakdown above, BorgWarner Inc. is considered to have better value than Fox Factory Holding Corp.. For investors who focus solely on a company’s valuation, BorgWarner Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

BorgWarner Inc. and Fox Factory Holding Corp. Growth Grades

Company Ticker Growth
BorgWarner Inc. BWA A
Fox Factory Holding Corp. FOXF B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

BorgWarner Inc. has a Growth Score of 95, which is Very Strong. Fox Factory Holding Corp. has a Growth Score of 64, which is Strong.

The Growth Grade Winner: BorgWarner Inc.

As you can clearly see from the Growth Grade breakdown above, BorgWarner Inc. has a more attractive growth grade than Fox Factory Holding Corp.. For investors who focus solely on how a company is growing relative to other companies in the same industry, BorgWarner Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

BorgWarner Inc. and Fox Factory Holding Corp.’s Momentum Grades

Company Ticker Momentum
BorgWarner Inc. BWA B
Fox Factory Holding Corp. FOXF C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

BorgWarner Inc. has a Momentum Score of 67, which is Strong. Fox Factory Holding Corp. has a Momentum Score of 43, which is Average.

The Momentum Grade Winner: BorgWarner Inc.

As you can clearly see from the Momentum Grade breakdown above, BorgWarner Inc. is considered to have stronger momentum compared to Fox Factory Holding Corp.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, BorgWarner Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other BorgWarner Inc. and Fox Factory Holding Corp. Grades

In addition to Growth, Value and Momentum, A+ Investor also provides grades for Estimate Revisions and Quality.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether BorgWarner Inc. and Fox Factory Holding Corp. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, BorgWarner Inc. or Fox Factory Holding Corp. Stock?

Overall, BorgWarner Inc. stock has a Value Score of 72, Growth Score of 95 and Momentum Score of 67.

Fox Factory Holding Corp. stock has a Value Score of 40, Growth Score of 64 and Momentum Score of 43.

Comparing BorgWarner Inc. and Fox Factory Holding Corp.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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