BorgWarner Inc (BWA)vsStrattec Security Corporation (STRT)
BWA
BorgWarner Inc
$77.03
-0.45%
CONSUMER CYCLICAL · Cap: $15.28B
STRT
Strattec Security Corporation
$78.20
+0.54%
CONSUMER CYCLICAL · Cap: $323.06M
Smart Verdict
WallStSmart Research — data-driven comparison
BorgWarner Inc generates 2373% more annual revenue ($14.33B vs $579.58M). STRT leads profitability with a 4.3% profit margin vs 2.5%. BWA appears more attractively valued with a PEG of 0.64. BWA earns a higher WallStSmart Score of 61/100 (C+).
BWA
Buy61
out of 100
Grade: C+
STRT
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.7%
Fair Value
$104.52
Current Price
$77.03
$27.49 discount
Margin of Safety
-33.4%
Fair Value
$67.57
Current Price
$78.20
$10.63 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
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Areas to Watch
0.5% revenue growth
ROE of 6.6% — below average capital efficiency
2.5% margin — thin
Premium valuation, high expectations priced in
Expensive relative to growth rate
Smaller company, higher risk/reward
4.3% margin — thin
Operating margin of 3.4%
Comparative Analysis Report
WallStSmart ResearchBull 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 : STRT
The strongest argument for STRT centers on Price/Book, Debt/Equity, Altman Z-Score.
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 : STRT
The primary concerns for STRT are PEG Ratio, Market Cap, Profit Margin. Thin 4.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
STRT carries more volatility with a beta of 1.18 — expect wider price swings.
BWA is growing revenue faster at 0.5% — sustainability is the question.
STRT generates stronger free cash flow (10M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BWA scores higher overall (61/100 vs 48/100). Both earn "Buy" and "Hold" 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 →Strattec Security Corporation
CONSUMER CYCLICAL · AUTO PARTS · USA
Strattec Security Corporation designs, develops, manufactures and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company is headquartered in Milwaukee, Wisconsin.
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