WallStSmart

BorgWarner Inc (BWA)vsMagna International Inc (MGA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Magna International Inc generates 193% more annual revenue ($42.01B vs $14.32B). MGA leads profitability with a 2.0% profit margin vs 1.9%. BWA appears more attractively valued with a PEG of 0.38. BWA earns a higher WallStSmart Score of 58/100 (C).

BWA

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 7.3Quality: 8.0
Piotroski: 5/9Altman Z: 2.76

MGA

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 7.3Quality: 5.8
Piotroski: 4/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWASignificantly Overvalued (-659.8%)

Margin of Safety

-659.8%

Fair Value

$8.70

Current Price

$52.23

$43.53 premium

UndervaluedFair: $8.70Overvalued
MGASignificantly Overvalued (-185.2%)

Margin of Safety

-185.2%

Fair Value

$20.26

Current Price

$52.19

$31.93 premium

UndervaluedFair: $20.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BWA2 strengths · Avg: 9.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

MGA3 strengths · Avg: 8.7/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

PEG RatioValuation
0.518/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.32B8/10

Generating 1.3B in free cash flow

Areas to Watch

BWA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

P/E RatioValuation
40.5x2/10

Premium valuation, high expectations priced in

MGA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

EPS GrowthGrowth
-35.7%2/10

Earnings declined 35.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : BWA

The strongest argument for BWA centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.

Bull Case : MGA

The strongest argument for MGA centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.51 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 40.5x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Bear Case : MGA

The primary concerns for MGA are Revenue Growth, Return on Equity, Profit Margin. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

MGA carries more volatility with a beta of 1.83 — expect wider price swings.

BWA is growing revenue faster at 3.9% — sustainability is the question.

MGA generates stronger free cash flow (1.3B), providing more financial flexibility.

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

Bottom Line

BWA scores higher overall (58/100 vs 56/100). 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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Magna International Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.

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