WallStSmart

BorgWarner Inc (BWA)vsGenuine Parts Co (GPC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Genuine Parts Co generates 77% more annual revenue ($25.33B vs $14.34B). BWA leads profitability with a 2.9% profit margin vs 0.1%. BWA appears more attractively valued with a PEG of 0.33. BWA earns a higher WallStSmart Score of 65/100 (B-).

BWA

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 5.0Value: 8.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.56

GPC

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 5.0Value: 2.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+46.5%)

Margin of Safety

+46.5%

Fair Value

$102.66

Current Price

$55.73

$46.93 discount

UndervaluedFair: $102.66Overvalued
GPCSignificantly Overvalued (-34.0%)

Margin of Safety

-34.0%

Fair Value

$111.40

Current Price

$121.39

$9.99 premium

UndervaluedFair: $111.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BWA3 strengths · Avg: 8.7/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
30.1%8/10

Earnings expanding 30.1% YoY

GPC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

BWA4 concerns · Avg: 3.5/10
P/E RatioValuation
29.1x4/10

Moderate valuation

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

GPC4 concerns · Avg: 4.0/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.724/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BWA

The strongest argument for BWA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bull Case : GPC

GPC has a balanced fundamental profile.

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 : GPC

The primary concerns for GPC are PEG Ratio, Revenue Growth, EPS Growth. A P/E of 468.5x leaves little room for execution misses. Thin 0.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

BWA carries more volatility with a beta of 1.14 — expect wider price swings.

GPC is growing revenue faster at 4.2% — 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

BWA scores higher overall (65/100 vs 47/100). Both earn "Strong Buy" and "Hold" 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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Genuine Parts Co

CONSUMER CYCLICAL · AUTO PARTS · USA

Genuine Parts Company (GPC) is an American service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.

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