WallStSmart

BorgWarner Inc (BWA)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 76% more annual revenue ($25.19B vs $14.33B). SE leads profitability with a 6.4% profit margin vs 2.5%. BWA appears more attractively valued with a PEG of 0.54. 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

SE

Buy

52

out of 100

Grade: C-

Growth: 8.0Profit: 5.5Value: 6.0Quality: 7.5
Piotroski: 6/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+38.4%)

Margin of Safety

+38.4%

Fair Value

$103.82

Current Price

$62.44

$41.38 discount

UndervaluedFair: $103.82Overvalued
SEUndervalued (+52.3%)

Margin of Safety

+52.3%

Fair Value

$240.26

Current Price

$104.05

$136.21 discount

UndervaluedFair: $240.26Overvalued

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
0.548/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

SE3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
46.6%10/10

Revenue surging 46.6% year-over-year

Market CapQuality
$66.83B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

BWA4 concerns · Avg: 3.5/10
P/E RatioValuation
38.3x4/10

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

SE4 concerns · Avg: 3.8/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

EPS GrowthGrowth
3.1%4/10

3.1% earnings growth

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : BWA

The strongest argument for BWA centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.54 suggests the stock is reasonably priced for its growth.

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, Market Cap, Debt/Equity. Revenue growth of 46.6% 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 : SE

The primary concerns for SE are PEG Ratio, EPS Growth, Altman Z-Score. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

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

SE carries more volatility with a beta of 1.55 — expect wider price swings.

SE is growing revenue faster at 46.6% — sustainability is the question.

SE generates stronger free cash flow (919M), providing more financial flexibility.

Bottom Line

BWA scores higher overall (63/100 vs 52/100). SE offers better value entry with a 52.3% 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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Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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