BorgWarner Inc (BWA)vsStandard Motor Products Inc (SMP)
BWA
BorgWarner Inc
$69.47
+1.88%
CONSUMER CYCLICAL · Cap: $13.99B
SMP
Standard Motor Products Inc
$39.43
+1.16%
CONSUMER CYCLICAL · Cap: $862.70M
Smart Verdict
WallStSmart Research — data-driven comparison
BorgWarner Inc generates 684% more annual revenue ($14.33B vs $1.83B). BWA leads profitability with a 2.5% profit margin vs 2.5%. SMP appears more attractively valued with a PEG of 0.53. SMP earns a higher WallStSmart Score of 67/100 (B-).
BWA
Buy63
out of 100
Grade: C+
SMP
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+33.4%
Fair Value
$104.30
Current Price
$69.47
$34.83 discount
Margin of Safety
-13.3%
Fair Value
$39.53
Current Price
$39.43
$0.10 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 61.1% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 35.6% YoY
Areas to Watch
Premium valuation, high expectations priced in
0.5% revenue growth
ROE of 6.6% — below average capital efficiency
2.5% margin — thin
Smaller company, higher risk/reward
ROE of 6.6% — below average capital efficiency
2.5% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : SMP
The strongest argument for SMP centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.53 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 2.5% margins leave little buffer for downturns.
Bear Case : SMP
The primary concerns for SMP are Market Cap, Return on Equity, Profit Margin. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
BWA carries more volatility with a beta of 1.06 — expect wider price swings.
SMP is growing revenue faster at 9.1% — 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
SMP scores higher overall (67/100 vs 63/100). BWA offers better value entry with a 33.4% 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 →Standard Motor Products Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Standard Motor Products, Inc. manufactures and distributes motor vehicle replacement parts to the automotive aftermarket industry. The company is headquartered in Long Island City, New York.
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