BorgWarner Inc (BWA)vsLKQ Corporation (LKQ)
BWA
BorgWarner Inc
$66.65
-4.05%
CONSUMER CYCLICAL · Cap: $13.49B
LKQ
LKQ Corporation
$24.11
+2.03%
CONSUMER CYCLICAL · Cap: $6.30B
Smart Verdict
WallStSmart Research — data-driven comparison
BorgWarner Inc generates 5% more annual revenue ($14.34B vs $13.69B). LKQ leads profitability with a 3.4% profit margin vs 2.9%. BWA appears more attractively valued with a PEG of 0.36. BWA earns a higher WallStSmart Score of 65/100 (B-).
BWA
Strong Buy65
out of 100
Grade: B-
LKQ
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.0%
Fair Value
$103.66
Current Price
$66.65
$37.01 discount
Margin of Safety
+65.8%
Fair Value
$101.88
Current Price
$24.11
$77.77 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 30.1% YoY
Reasonable price relative to book value
Attractively priced relative to earnings
Areas to Watch
Premium valuation, high expectations priced in
0.3% revenue growth
ROE of 7.4% — below average capital efficiency
2.9% margin — thin
3.4% margin — thin
Weak financial health signals
Revenue declined 3.0%
Earnings declined 29.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : LKQ
The strongest argument for LKQ centers on Price/Book, P/E Ratio. PEG of 1.06 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 : LKQ
The primary concerns for LKQ are Profit Margin, Piotroski F-Score, Revenue Growth. Thin 3.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
BWA carries more volatility with a beta of 1.10 — expect wider price swings.
BWA is growing revenue faster at 0.3% — 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 50/100). LKQ offers better value entry with a 65.8% 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.
Visit Website →LKQ Corporation
CONSUMER CYCLICAL · AUTO PARTS · USA
LKQ Corporation (Like Kind and Quality) is an American provider of alternative and speciality parts to repair and accessorise automobiles and other vehicles.
Visit Website →Compare with Other AUTO PARTS Stocks
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