BorgWarner Inc (BWA)vsThe Home Depot Inc (HD)
BWA
BorgWarner Inc
$54.24
-0.95%
CONSUMER CYCLICAL · Cap: $11.23B
HD
The Home Depot Inc
$321.65
+0.58%
CONSUMER CYCLICAL · Cap: $320.37B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1050% more annual revenue ($164.68B vs $14.32B). HD leads profitability with a 8.6% profit margin vs 1.9%. BWA appears more attractively valued with a PEG of 0.46. BWA earns a higher WallStSmart Score of 55/100 (C).
BWA
Buy55
out of 100
Grade: C
HD
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-659.8%
Fair Value
$8.70
Current Price
$54.24
$45.54 premium
Margin of Safety
-232.6%
Fair Value
$96.70
Current Price
$321.65
$224.95 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Areas to Watch
3.9% revenue growth
ROE of 5.9% — below average capital efficiency
1.9% margin — thin
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Trading at 25.0x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : BWA
The strongest argument for BWA centers on PEG Ratio, Price/Book. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : BWA
The primary concerns for BWA are Revenue Growth, Return on Equity, Profit Margin. A P/E of 42.4x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.04 — expect wider price swings.
BWA is growing revenue faster at 3.9% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BWA scores higher overall (55/100 vs 50/100). 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 →The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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