WallStSmart

BorgWarner Inc (BWA)vsRee Automotive Holding Inc (REE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 1105066% more annual revenue ($14.33B vs $1.30M). BWA leads profitability with a 2.5% profit margin vs 0.0%. BWA earns a higher WallStSmart Score of 63/100 (C+).

BWA

Buy

63

out of 100

Grade: C+

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

REE

Avoid

34

out of 100

Grade: F

Growth: 7.3Profit: 2.5Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: -41.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+33.4%)

Margin of Safety

+33.4%

Fair Value

$104.30

Current Price

$65.89

$38.41 discount

UndervaluedFair: $104.30Overvalued

Intrinsic value data unavailable for REE.

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
0.588/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

REE2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
4538.0%10/10

Revenue surging 4538.0% year-over-year

Areas to Watch

BWA4 concerns · Avg: 3.5/10
P/E RatioValuation
39.6x4/10

Premium valuation, high expectations priced in

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

REE4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$6.70M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Return on EquityProfitability
-202.6%2/10

ROE of -202.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : BWA

The strongest argument for BWA centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bull Case : REE

The strongest argument for REE centers on Price/Book, Revenue Growth. Revenue growth of 4538.0% demonstrates continued momentum.

Bear Case : BWA

The primary concerns for BWA are P/E Ratio, Revenue Growth, Return on Equity. Thin 2.5% margins leave little buffer for downturns.

Bear Case : REE

The primary concerns for REE are EPS Growth, Market Cap, Profit Margin. Debt-to-equity of 2.84 is elevated, increasing financial risk.

Key Dynamics to Monitor

BWA profiles as a value stock while REE is a hypergrowth play — different risk/reward profiles.

REE carries more volatility with a beta of 2.32 — expect wider price swings.

REE is growing revenue faster at 4538.0% — sustainability is the question.

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

Bottom Line

BWA scores higher overall (63/100 vs 34/100). Both earn "Buy" and "Avoid" 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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Ree Automotive Holding Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Ree Automotive Holding Inc is a forward-thinking leader in the electric vehicle industry, recognized for its groundbreaking REEplatform, which consolidates crucial vehicle components into a flat, modular architecture. This innovative design not only enhances scalability but also supports a wide array of electric vehicle applications, aligning with the global demand for sustainable transportation solutions across both commercial and consumer markets. With a robust emphasis on advanced engineering and continuous research and development, Ree is strategically positioned to leverage the transition toward eco-friendly mobility. Furthermore, its strategic partnerships enhance its influence and agility within the evolving landscape of electrification, strengthening its potential as a key player in the future of transportation.

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