Which Is a Better Investment, BorgWarner Inc. or Xpel Inc Stock?

By AAII Staff
September 03, 2026
Large versus logo comparing two stocks in the same industry
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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 XPEL, Inc. or BorgWarner Inc. 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 XPEL, Inc. and BorgWarner Inc. compare based on key financial metrics to determine which better meets your investment needs.

About XPEL, Inc. and BorgWarner Inc.

XPEL, Inc. manufactures, installs, sells, and distributes protective films, coatings and related services. It offers automotive and surface paint protection, windshield protection, and automotive and architectural window films, as well as proprietary DAP software. The company also provides pre-cut film products, merchandise and apparel, ceramic coatings, installation, and tools and accessories; and training services to customers for the installation of its products. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company operates in the United States, Canada, China, the Asia Pacific, European Union, the United Kingdom, Africa, India, the Middle East, Latin America, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

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.

Latest Automobile Components and XPEL, Inc., BorgWarner Inc. Stock News

As of September 2, 2026, XPEL, Inc. had a $1.4 billion market capitalization, compared to the Automobile Components median of $2.6 million. XPEL, Inc.’s stock is up 2% in 2026, up 0.4% in the previous five trading days and up 36.62% in the past year.

Currently, XPEL, Inc.’s price-earnings ratio is 25.0. XPEL, Inc.’s trailing 12-month revenue is $508.1 million with a 10.8% net profit margin. Year-over-year quarterly sales growth most recently was 14.8%. There are no analysts providing consensus earnings estimates for the current fiscal year. XPEL, Inc. does not currently pay a dividend.

As of September 2, 2026, BorgWarner Inc. had a $13.3 billion market cap, putting it in the 81st percentile of all stocks. BorgWarner Inc.’s stock is up 45.9% in 2026, up 1.4% in the previous five trading days and up 52.79% in the past year.

Currently, BorgWarner Inc.’s price-earnings ratio is 33.3. 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.

How We Compare XPEL, Inc. and BorgWarner Inc. 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 XPEL, Inc. and BorgWarner Inc.’s stock grades to see how they measure up against one another.

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XPEL, Inc. and BorgWarner Inc. Stock Value Grades

Company Ticker Value
XPEL, Inc. XPEL D
BorgWarner Inc. BWA B

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.

XPEL, Inc. has a Value Score of 32, which is Expensive. BorgWarner Inc. has a Value Score of 73, which is Value.

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 XPEL, Inc.. 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.

XPEL, Inc. and BorgWarner Inc. Growth Grades

Company Ticker Growth
XPEL, Inc. XPEL B
BorgWarner Inc. BWA A

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.

XPEL, Inc. has a Growth Score of 69, which is Strong. BorgWarner Inc. has a Growth Score of 95, which is Very 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 XPEL, Inc.. 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.

XPEL, Inc. and BorgWarner Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
XPEL, Inc. XPEL na
BorgWarner Inc. BWA B

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

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

XPEL, Inc. does not have a meaningful Earnings Estimate Score. BorgWarner Inc. has a Earnings Estimate Score of 62, which is Positive.

The Earnings Estimate Revisions Stock Winner: Undetermined

If you are strictly an investor who focuses on earnings estimate revisions, you may want to add BorgWarner Inc. to your watch list. However, because only one of the companies in our comparison has a valid Earnings Estimate Revisions Grade, we cannot call it a clear winner. Evaluation of the other grades for both companies is necessary in order to understand which stock is the better investment based on AAII’s proprietary scores and analysis.

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

Other XPEL, Inc. and BorgWarner Inc. Grades

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

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Momentum grades help 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.

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 XPEL, Inc. and BorgWarner Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, XPEL, Inc. or BorgWarner Inc. Stock?

Overall, XPEL, Inc. stock has a Value Score of 32, Growth Score of 69 and Estimate Revisions Score of .

BorgWarner Inc. stock has a Value Score of 73, Growth Score of 95 and Estimate Revisions Score of 62.

Comparing XPEL, Inc. and BorgWarner Inc.’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.

Learn More About A+ Investor

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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