WallStSmart

BorgWarner Inc (BWA)vsDorman Products Inc (DORM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 566% more annual revenue ($14.33B vs $2.15B). DORM leads profitability with a 8.8% 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

Buy

61

out of 100

Grade: C+

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

DORM

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 5.3Quality: 9.0
Piotroski: 7/9Altman Z: 3.38
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
DORMOvervalued (-14.3%)

Margin of Safety

-14.3%

Fair Value

$116.55

Current Price

$127.03

$10.48 premium

UndervaluedFair: $116.55Overvalued

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

DORM2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.3810/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

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

DORM2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

EPS GrowthGrowth
-23.5%2/10

Earnings declined 23.5%

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 : DORM

The strongest argument for DORM centers on Altman Z-Score, Price/Book. PEG of 1.17 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 : DORM

The primary concerns for DORM are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

BWA carries more volatility with a beta of 1.06 — expect wider price swings.

DORM is growing revenue faster at 4.2% — sustainability is the question.

DORM generates stronger free cash flow (35M), providing more financial flexibility.

Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BWA scores higher overall (61/100 vs 53/100). 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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Dorman Products Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Dorman Products, Inc. supplies replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks to the automotive aftermarket industry in the United States, Canada, Mexico, Europe, the Middle East and Australia. The company is headquartered in Colmar, Pennsylvania.

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