BorgWarner Inc (BWA)vsGoodyear Tire & Rubber Co (GT)
BWA
BorgWarner Inc
$64.41
+3.55%
CONSUMER CYCLICAL · Cap: $12.81B
GT
Goodyear Tire & Rubber Co
$7.08
-2.75%
CONSUMER CYCLICAL · Cap: $2.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Goodyear Tire & Rubber Co generates 25% more annual revenue ($17.91B vs $14.33B). BWA leads profitability with a 2.5% profit margin vs -11.6%. GT appears more attractively valued with a PEG of 0.43. BWA earns a higher WallStSmart Score of 63/100 (C+).
BWA
Buy63
out of 100
Grade: C+
GT
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.0%
Fair Value
$103.57
Current Price
$64.41
$39.16 discount
Margin of Safety
+39.5%
Fair Value
$15.68
Current Price
$7.08
$8.60 discount
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
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 34.6% 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
Operating margin of 0.2%
ROE of -50.0% — below average capital efficiency
Revenue declined 8.7%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : BWA
The strongest argument for BWA centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bull Case : GT
The strongest argument for GT centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.43 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 : GT
The primary concerns for GT are Operating Margin, Return on Equity, Revenue Growth. Debt-to-equity of 2.67 is elevated, increasing financial risk.
Key Dynamics to Monitor
BWA profiles as a value stock while GT is a turnaround play — different risk/reward profiles.
GT carries more volatility with a beta of 1.12 — expect wider price swings.
BWA is growing revenue faster at 0.5% — sustainability is the question.
BWA generates stronger free cash flow (9M), providing more financial flexibility.
Bottom Line
BWA scores higher overall (63/100 vs 59/100). GT offers better value entry with a 39.5% margin of safety. 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.
Visit Website →Goodyear Tire & Rubber Co
CONSUMER CYCLICAL · AUTO PARTS · USA
Goodyear Tire & Rubber Company develops, manufactures, distributes and sells tires and related products and services worldwide. The company is headquartered in Akron, Ohio.
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