WallStSmart

BorgWarner Inc (BWA)vsGentex Corporation (GNTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 444% more annual revenue ($14.33B vs $2.63B). GNTX leads profitability with a 14.7% profit margin vs 2.5%. BWA appears more attractively valued with a PEG of 0.64. GNTX earns a higher WallStSmart Score of 67/100 (B-).

BWA

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 6.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.58

GNTX

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 8.7Quality: 8.5
Piotroski: 4/9Altman Z: 5.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+28.7%)

Margin of Safety

+28.7%

Fair Value

$104.52

Current Price

$77.03

$27.49 discount

UndervaluedFair: $104.52Overvalued
GNTXUndervalued (+47.7%)

Margin of Safety

+47.7%

Fair Value

$46.73

Current Price

$24.63

$22.10 discount

UndervaluedFair: $46.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BWA3 strengths · Avg: 8.7/10
EPS GrowthGrowth
61.1%10/10

Earnings expanding 61.1% YoY

PEG RatioValuation
0.648/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

GNTX6 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.8010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.868/10

Growing faster than its price suggests

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.1%8/10

17.1% revenue growth

Areas to Watch

BWA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Return on EquityProfitability
6.6%3/10

ROE of 6.6% — below average capital efficiency

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

P/E RatioValuation
43.3x2/10

Premium valuation, high expectations priced in

GNTX0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : GNTX

The strongest argument for GNTX centers on Debt/Equity, Altman Z-Score, PEG Ratio. Revenue growth of 17.1% demonstrates continued momentum. PEG of 0.86 suggests the stock is reasonably priced for its growth.

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.

Bear Case : GNTX

No major red flags identified for GNTX, but monitor valuation.

Key Dynamics to Monitor

BWA profiles as a value stock while GNTX is a growth play — different risk/reward profiles.

BWA carries more volatility with a beta of 1.06 — expect wider price swings.

GNTX is growing revenue faster at 17.1% — sustainability is the question.

GNTX generates stronger free cash flow (120M), providing more financial flexibility.

Bottom Line

GNTX scores higher overall (67/100 vs 61/100) and 17.1% revenue growth. BWA offers better value entry with a 28.7% margin of safety. 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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Gentex Corporation

CONSUMER CYCLICAL · AUTO PARTS · USA

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, tinted glass, and fire protection products in the United States, Germany, Japan, Mexico, and internationally. The company is headquartered in Zeeland, Michigan.

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