Allison Transmission Holdings Inc (ALSN)vsBorgWarner Inc (BWA)
ALSN
Allison Transmission Holdings Inc
$126.94
-0.47%
CONSUMER CYCLICAL · Cap: $10.78B
BWA
BorgWarner Inc
$66.65
+1.46%
CONSUMER CYCLICAL · Cap: $13.49B
Smart Verdict
WallStSmart Research — data-driven comparison
BorgWarner Inc generates 226% more annual revenue ($14.34B vs $4.40B). ALSN leads profitability with a 12.0% profit margin vs 2.9%. BWA appears more attractively valued with a PEG of 0.36. ALSN earns a higher WallStSmart Score of 66/100 (B-).
ALSN
Strong Buy66
out of 100
Grade: B-
BWA
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-47.0%
Fair Value
$79.22
Current Price
$126.94
$47.72 premium
Margin of Safety
+37.0%
Fair Value
$103.66
Current Price
$66.65
$37.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 92.4% year-over-year
Every $100 of equity generates 29 in profit
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
Distress zone — elevated risk
Earnings declined 6.1%
Elevated debt levels
Premium valuation, high expectations priced in
0.3% revenue growth
ROE of 7.4% — below average capital efficiency
2.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ALSN
The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 92.4% demonstrates continued momentum. PEG of 0.60 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 0.36 suggests the stock is reasonably priced for its growth.
Bear Case : ALSN
The primary concerns for ALSN are Altman Z-Score, EPS Growth, Debt/Equity. Debt-to-equity of 2.08 is elevated, increasing financial risk.
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
ALSN profiles as a growth stock while BWA is a value play — different risk/reward profiles.
BWA carries more volatility with a beta of 1.10 — expect wider price swings.
ALSN is growing revenue faster at 92.4% — sustainability is the question.
BWA generates stronger free cash flow (490M), providing more financial flexibility.
Bottom Line
ALSN scores higher overall (66/100 vs 65/100) and 92.4% revenue growth. BWA offers better value entry with a 37.0% margin of safety. Both earn "Strong Buy" and "Strong 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.
Allison Transmission Holdings Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.
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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