WallStSmart

BorgWarner Inc (BWA)vsFox Factory Holding Corp (FOXF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 868% more annual revenue ($14.33B vs $1.48B). BWA leads profitability with a 2.5% profit margin vs -20.3%. 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

FOXF

Hold

43

out of 100

Grade: D

Growth: 2.7Profit: 3.0Value: 6.3Quality: 7.0
Piotroski: 4/9Altman Z: 0.87
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+32.6%)

Margin of Safety

+32.6%

Fair Value

$103.33

Current Price

$69.68

$33.65 discount

UndervaluedFair: $103.33Overvalued
FOXFUndervalued (+75.6%)

Margin of Safety

+75.6%

Fair Value

$82.16

Current Price

$21.72

$60.44 discount

UndervaluedFair: $82.16Overvalued

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
2.6x8/10

Reasonable price relative to book value

FOXF2 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Areas to Watch

BWA4 concerns · Avg: 3.5/10
P/E RatioValuation
37.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

FOXF4 concerns · Avg: 3.5/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Market CapQuality
$886.11M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

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 : FOXF

The strongest argument for FOXF centers on Price/Book, Debt/Equity.

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 : FOXF

The primary concerns for FOXF are PEG Ratio, Revenue Growth, Market Cap.

Key Dynamics to Monitor

BWA profiles as a value stock while FOXF is a turnaround play — different risk/reward profiles.

FOXF carries more volatility with a beta of 1.36 — expect wider price swings.

FOXF is growing revenue faster at 3.8% — sustainability is the question.

BWA generates stronger free cash flow (490M), providing more financial flexibility.

Bottom Line

BWA scores higher overall (63/100 vs 43/100). FOXF offers better value entry with a 75.6% margin of safety. 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 →

Fox Factory Holding Corp

CONSUMER CYCLICAL · AUTO PARTS · USA

Fox Factory Holding Corp. The company is headquartered in Braselton, Georgia.

Want to dig deeper into these stocks?