WallStSmart

BorgWarner Inc (BWA)vsDauch Corporation (DCH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 74% more annual revenue ($14.34B vs $8.22B). BWA leads profitability with a 2.9% profit margin vs -2.0%. BWA appears more attractively valued with a PEG of 0.36. BWA earns a higher WallStSmart Score of 65/100 (B-).

BWA

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 5.0Value: 8.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.56

DCH

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 3.0Value: 6.7Quality: 3.5
Piotroski: 3/9Altman Z: 1.42
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+37.0%)

Margin of Safety

+37.0%

Fair Value

$103.66

Current Price

$66.65

$37.01 discount

UndervaluedFair: $103.66Overvalued

Intrinsic value data unavailable for DCH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BWA3 strengths · Avg: 8.7/10
PEG RatioValuation
0.3610/10

Growing faster than its price suggests

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

EPS GrowthGrowth
30.1%8/10

Earnings expanding 30.1% YoY

DCH3 strengths · Avg: 10.0/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
92.4%10/10

Revenue surging 92.4% year-over-year

Areas to Watch

BWA4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

DCH4 concerns · Avg: 2.8/10
Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-8.5%2/10

ROE of -8.5% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : DCH

The strongest argument for DCH centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 92.4% demonstrates continued momentum. PEG of 0.43 suggests the stock is reasonably priced for its growth.

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.

Bear Case : DCH

The primary concerns for DCH are Market Cap, Operating Margin, Piotroski F-Score. Debt-to-equity of 3.51 is elevated, increasing financial risk.

Key Dynamics to Monitor

BWA profiles as a value stock while DCH is a hypergrowth play — different risk/reward profiles.

DCH carries more volatility with a beta of 1.64 — expect wider price swings.

DCH is growing revenue faster at 92.4% — sustainability is the question.

BWA generates stronger free cash flow (490M), providing more financial flexibility.

Bottom Line

BWA scores higher overall (65/100 vs 55/100). 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.

BorgWarner Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

BorgWarner Inc. is an American multinational automotive supplier headquartered in Auburn Hills, Michigan.

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Dauch Corporation

CONSUMER CYCLICAL · AUTO PARTS · USA

Dauch Corporation, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles. The company is headquartered in Detroit, Michigan.

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