AutoZone Inc (AZO)vsBorgWarner Inc (BWA)
AZO
AutoZone Inc
$3,046.44
-0.51%
CONSUMER CYCLICAL · Cap: $49.15B
BWA
BorgWarner Inc
$62.44
-0.53%
CONSUMER CYCLICAL · Cap: $13.52B
Smart Verdict
WallStSmart Research — data-driven comparison
AutoZone Inc generates 39% more annual revenue ($19.99B vs $14.33B). AZO leads profitability with a 12.4% profit margin vs 2.5%. BWA appears more attractively valued with a PEG of 0.54. BWA earns a higher WallStSmart Score of 63/100 (C+).
AZO
Buy53
out of 100
Grade: C-
BWA
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.3%
Fair Value
$2015.71
Current Price
$3046.44
$1030.73 premium
Margin of Safety
+38.4%
Fair Value
$103.82
Current Price
$62.44
$41.38 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Earnings expanding 61.1% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
ROE of 0.0% — below average capital efficiency
Distress zone — elevated risk
Premium valuation, high expectations priced in
0.5% revenue growth
ROE of 6.6% — below average capital efficiency
2.5% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : AZO
The strongest argument for AZO centers on Debt/Equity. PEG of 1.39 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 0.54 suggests the stock is reasonably priced for its growth.
Bear Case : AZO
The primary concerns for AZO are Return on Equity, Altman Z-Score.
Bear Case : BWA
The primary concerns for BWA are P/E Ratio, Revenue Growth, Return on Equity. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
BWA carries more volatility with a beta of 1.08 — expect wider price swings.
AZO is growing revenue faster at 8.4% — sustainability is the question.
AZO generates stronger free cash flow (456M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BWA scores higher overall (63/100 vs 53/100). 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.
AutoZone Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
AutoZone, Inc. is an American retailer of aftermarket automotive parts and accessories, the largest in the United States.
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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