WallStSmart

BorgWarner Inc (BWA)vsMonro Muffler Brake Inc (MNRO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 1139% more annual revenue ($14.33B vs $1.16B). BWA leads profitability with a 2.5% profit margin vs 0.2%. BWA appears more attractively valued with a PEG of 0.64. 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

MNRO

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 4.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+31.1%)

Margin of Safety

+31.1%

Fair Value

$104.30

Current Price

$77.03

$27.27 discount

UndervaluedFair: $104.30Overvalued
MNROUndervalued (+57.4%)

Margin of Safety

+57.4%

Fair Value

$54.33

Current Price

$15.57

$38.76 discount

UndervaluedFair: $54.33Overvalued

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

MNRO2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
161.3%10/10

Earnings expanding 161.3% YoY

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

MNRO4 concerns · Avg: 2.8/10
Market CapQuality
$440.77M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.4%3/10

ROE of 0.4% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

PEG RatioValuation
3.342/10

Expensive relative to growth rate

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 : MNRO

The strongest argument for MNRO centers on Price/Book, EPS Growth.

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 : MNRO

The primary concerns for MNRO are Market Cap, Return on Equity, Profit Margin. A P/E of 489.3x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

BWA is growing revenue faster at 0.5% — 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 53/100). MNRO offers better value entry with a 57.4% margin of safety. 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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Monro Muffler Brake Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Monro, Inc. provides auto underbody repair and tire sales and services in the United States. The company is headquartered in Rochester, New York.

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