WallStSmart

BorgWarner Inc (BWA)vsGenuine Parts Co (GPC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Genuine Parts Co generates 72% more annual revenue ($24.70B vs $14.33B). BWA leads profitability with a 2.5% profit margin vs 0.2%. BWA appears more attractively valued with a PEG of 0.61. BWA earns a higher WallStSmart Score of 61/100 (C+).

BWA

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 7.3Quality: 7.0
Piotroski: 5/9Altman Z: 2.58

GPC

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 5.0Value: 3.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+31.4%)

Margin of Safety

+31.4%

Fair Value

$104.75

Current Price

$71.31

$33.44 discount

UndervaluedFair: $104.75Overvalued
GPCSignificantly Overvalued (-36.9%)

Margin of Safety

-36.9%

Fair Value

$109.02

Current Price

$98.70

$10.32 premium

UndervaluedFair: $109.02Overvalued

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
0.618/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

GPC0 strengths · Avg: 0/10

No standout strengths identified

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
41.8x2/10

Premium valuation, high expectations priced in

GPC4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.724/10

Distress zone — elevated risk

Return on EquityProfitability
1.3%3/10

ROE of 1.3% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Debt/EquityHealth
1.503/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BWA

The strongest argument for BWA centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bull Case : GPC

PEG of 1.32 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 41.8x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.

Bear Case : GPC

The primary concerns for GPC are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 223.6x leaves little room for execution misses. Debt-to-equity of 1.50 is elevated, increasing financial risk.

Key Dynamics to Monitor

BWA carries more volatility with a beta of 0.98 — expect wider price swings.

GPC is growing revenue faster at 6.8% — sustainability is the question.

BWA generates stronger free cash flow (9M), providing more financial flexibility.

Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BWA scores higher overall (61/100 vs 49/100). Both earn "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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