Advance Auto Parts Inc (AAP)vsBorgWarner Inc (BWA)
AAP
Advance Auto Parts Inc
$45.50
-5.44%
CONSUMER CYCLICAL · Cap: $2.75B
BWA
BorgWarner Inc
$47.53
+2.69%
CONSUMER CYCLICAL · Cap: $11.39B
Smart Verdict
WallStSmart Research — data-driven comparison
BorgWarner Inc generates 66% more annual revenue ($14.34B vs $8.62B). BWA leads profitability with a 2.9% profit margin vs 1.0%. BWA appears more attractively valued with a PEG of 0.26. BWA earns a higher WallStSmart Score of 65/100 (B-).
AAP
Buy60
out of 100
Grade: C+
BWA
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.6%
Fair Value
$84.70
Current Price
$45.50
$39.20 discount
Margin of Safety
+48.1%
Fair Value
$102.66
Current Price
$47.53
$55.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 260.0% YoY
Growing faster than its price suggests
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 30.1% YoY
Areas to Watch
Moderate valuation
Distress zone — elevated risk
ROE of 2.0% — below average capital efficiency
1.0% margin — thin
Moderate valuation
0.3% revenue growth
ROE of 7.4% — below average capital efficiency
2.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : AAP
The strongest argument for AAP centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bull Case : BWA
The strongest argument for BWA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.26 suggests the stock is reasonably priced for its growth.
Bear Case : AAP
The primary concerns for AAP are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 2.31 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Bear Case : BWA
The primary concerns for BWA are P/E Ratio, Revenue Growth, Return on Equity. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
BWA carries more volatility with a beta of 1.14 — expect wider price swings.
BWA is growing revenue faster at 0.3% — sustainability is the question.
BWA generates stronger free cash flow (490M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BWA scores higher overall (65/100 vs 60/100). AAP offers better value entry with a 29.6% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Advance Auto Parts Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Advance Auto Parts, Inc. (Advance) is an American automotive aftermarket parts provider. Headquartered in Raleigh, North Carolina, it serves both professional installer and do-it-yourself (DIY) customers.
Visit Website →BorgWarner Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
BorgWarner Inc. is an American multinational automotive supplier headquartered in Auburn Hills, Michigan.
Visit Website →Compare with Other AUTO PARTS Stocks
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