WallStSmart

BorgWarner Inc (BWA)vsDauch Corporation (DCH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 111% more annual revenue ($14.33B vs $6.80B). BWA leads profitability with a 2.5% profit margin vs -1.9%. DCH appears more attractively valued with a PEG of 0.43. BWA earns a higher WallStSmart Score of 61/100 (C+).

BWA

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 6.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.58

DCH

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 3.0Value: 6.7Quality: 3.5
Piotroski: 3/9Altman Z: 1.42
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+28.7%)

Margin of Safety

+28.7%

Fair Value

$104.52

Current Price

$77.03

$27.49 discount

UndervaluedFair: $104.52Overvalued

Intrinsic value data unavailable for DCH.

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

DCH3 strengths · Avg: 10.0/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
68.6%10/10

Revenue surging 68.6% year-over-year

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

DCH4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : DCH

The strongest argument for DCH centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 68.6% demonstrates continued momentum. PEG of 0.43 suggests the stock is reasonably priced for its 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 : DCH

The primary concerns for DCH are EPS Growth, Market Cap, Operating Margin. Debt-to-equity of 3.57 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

DCH carries more volatility with a beta of 1.53 — expect wider price swings.

DCH is growing revenue faster at 68.6% — sustainability is the question.

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

Bottom Line

BWA scores higher overall (61/100 vs 57/100). 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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Dauch Corporation

CONSUMER CYCLICAL · AUTO PARTS · USA

Dauch Corporation, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles. The company is headquartered in Detroit, Michigan.

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