WallStSmart

BorgWarner Inc (BWA)vsDorman Products Inc (DORM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 566% more annual revenue ($14.34B vs $2.16B). DORM leads profitability with a 10.2% profit margin vs 2.9%. BWA appears more attractively valued with a PEG of 0.36. DORM earns a higher WallStSmart Score of 71/100 (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

DORM

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 6.0Quality: 9.0
Piotroski: 7/9Altman Z: 3.38
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
DORMOvervalued (-13.5%)

Margin of Safety

-13.5%

Fair Value

$117.45

Current Price

$126.66

$9.21 premium

UndervaluedFair: $117.45Overvalued

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

DORM5 strengths · Avg: 8.8/10
EPS GrowthGrowth
53.4%10/10

Earnings expanding 53.4% YoY

Altman Z-ScoreHealth
3.3810/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

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

DORM1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
0.7%4/10

0.7% revenue growth

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 : DORM

The strongest argument for DORM centers on EPS Growth, Altman Z-Score, P/E Ratio. PEG of 1.17 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 : DORM

The primary concerns for DORM are Revenue Growth.

Key Dynamics to Monitor

BWA carries more volatility with a beta of 1.10 — expect wider price swings.

DORM is growing revenue faster at 0.7% — 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

DORM scores higher overall (71/100 vs 65/100). 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.

BorgWarner Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

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

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Dorman Products Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Dorman Products, Inc. supplies replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks to the automotive aftermarket industry in the United States, Canada, Mexico, Europe, the Middle East and Australia. The company is headquartered in Colmar, Pennsylvania.

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