BorgWarner Inc (BWA)vsGoodyear Tire & Rubber Co (GT)
BWA
BorgWarner Inc
$77.03
-0.45%
CONSUMER CYCLICAL · Cap: $15.28B
GT
Goodyear Tire & Rubber Co
$5.71
+0.88%
CONSUMER CYCLICAL · Cap: $1.75B
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 61/100 (C+).
BWA
Buy61
out of 100
Grade: C+
GT
Buy57
out of 100
Grade: C
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
+40.3%
Fair Value
$15.88
Current Price
$5.71
$10.17 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
0.5% revenue growth
ROE of 6.6% — below average capital efficiency
2.5% margin — thin
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Operating margin of 0.2%
ROE of -50.0% — below average capital efficiency
Revenue declined 8.7%
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 : 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 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 : GT
The primary concerns for GT are Market Cap, Operating Margin, Return on Equity. 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 1.18 — 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 (61/100 vs 57/100). GT offers better value entry with a 40.3% 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.
Compare with Other AUTO PARTS Stocks
Want to dig deeper into these stocks?