Allison Transmission Holdings Inc (ALSN)vsBorgWarner Inc (BWA)
ALSN
Allison Transmission Holdings Inc
$115.75
-2.22%
CONSUMER CYCLICAL · Cap: $9.73B
BWA
BorgWarner Inc
$77.03
-0.45%
CONSUMER CYCLICAL · Cap: $15.28B
Smart Verdict
WallStSmart Research — data-driven comparison
BorgWarner Inc generates 293% more annual revenue ($14.33B vs $3.65B). ALSN leads profitability with a 14.9% profit margin vs 2.5%. BWA appears more attractively valued with a PEG of 0.64. ALSN earns a higher WallStSmart Score of 65/100 (C+).
ALSN
Buy65
out of 100
Grade: C+
BWA
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-81.0%
Fair Value
$64.33
Current Price
$115.75
$51.42 premium
Margin of Safety
+28.7%
Fair Value
$104.52
Current Price
$77.03
$27.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 83.6% year-over-year
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Earnings expanding 61.1% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Distress zone — elevated risk
Earnings declined 40.4%
Elevated debt levels
0.5% revenue growth
ROE of 6.6% — below average capital efficiency
2.5% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ALSN
The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 83.6% demonstrates continued momentum. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bull Case : BWA
The strongest argument for BWA centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.64 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 2.24 is elevated, increasing financial risk.
Bear Case : BWA
The primary concerns for BWA are Revenue Growth, Return on Equity, Profit Margin. A P/E of 43.3x leaves little room for execution misses. Thin 2.5% 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 1.06 — expect wider price swings.
ALSN is growing revenue faster at 83.6% — sustainability is the question.
ALSN generates stronger free cash flow (103M), providing more financial flexibility.
Bottom Line
ALSN scores higher overall (65/100 vs 61/100) and 83.6% revenue growth. BWA offers better value entry with a 28.7% margin of safety. Both earn "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.
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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