WallStSmart

BorgWarner Inc (BWA)vsGarrett Motion Inc (GTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 288% more annual revenue ($14.33B vs $3.69B). GTX leads profitability with a 9.3% profit margin vs 2.5%. GTX trades at a lower P/E of 19.6x. BWA earns a higher WallStSmart Score of 61/100 (C+).

BWA

Buy

61

out of 100

Grade: C+

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

GTX

Buy

50

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 5.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.36
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

Intrinsic value data unavailable for GTX.

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

GTX2 strengths · Avg: 10.0/10
EPS GrowthGrowth
63.3%10/10

Earnings expanding 63.3% YoY

Debt/EquityHealth
-1.8810/10

Conservative balance sheet, low leverage

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

GTX2 concerns · Avg: 2.5/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Altman Z-ScoreHealth
1.362/10

Distress zone — elevated risk

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 : GTX

The strongest argument for GTX centers on EPS Growth, Debt/Equity. Revenue growth of 12.2% demonstrates continued momentum.

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 : GTX

The primary concerns for GTX are Return on Equity, Altman Z-Score.

Key Dynamics to Monitor

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

GTX is growing revenue faster at 12.2% — sustainability is the question.

GTX generates stronger free cash flow (69M), providing more financial flexibility.

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

Bottom Line

BWA scores higher overall (61/100 vs 50/100). Both earn "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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Garrett Motion Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Garrett Motion Inc. designs, manufactures, and sells turbocharger and electric booster technologies to light and commercial vehicle OEMs worldwide. The company is headquartered in Rolle, Switzerland.

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