BorgWarner Inc (BWA)vsHolley Inc (HLLY)
BWA
BorgWarner Inc
$66.65
-4.08%
CONSUMER CYCLICAL · Cap: $13.49B
HLLY
Holley Inc
$2.69
+2.67%
CONSUMER CYCLICAL · Cap: $355.22M
Smart Verdict
WallStSmart Research — data-driven comparison
BorgWarner Inc generates 2239% more annual revenue ($14.34B vs $613.15M). BWA leads profitability with a 2.9% profit margin vs 1.7%. HLLY appears more attractively valued with a PEG of 0.25. HLLY earns a higher WallStSmart Score of 67/100 (B-).
BWA
Strong Buy65
out of 100
Grade: B-
HLLY
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.0%
Fair Value
$103.66
Current Price
$66.65
$37.01 discount
Margin of Safety
-71.8%
Fair Value
$2.45
Current Price
$2.69
$0.24 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 30.1% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 200.0% YoY
Areas to Watch
Premium valuation, high expectations priced in
0.3% revenue growth
ROE of 7.4% — below average capital efficiency
2.9% margin — thin
Premium valuation, high expectations priced in
3.2% revenue growth
Smaller company, higher risk/reward
ROE of 5.2% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : BWA
The strongest argument for BWA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.36 suggests the stock is reasonably priced for its growth.
Bull Case : HLLY
The strongest argument for HLLY centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.25 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 2.9% margins leave little buffer for downturns.
Bear Case : HLLY
The primary concerns for HLLY are P/E Ratio, Revenue Growth, Market Cap. Thin 1.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
HLLY carries more volatility with a beta of 1.32 — expect wider price swings.
HLLY is growing revenue faster at 3.2% — sustainability is the question.
BWA generates stronger free cash flow (490M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HLLY scores higher overall (67/100 vs 65/100). BWA offers better value entry with a 37.0% margin of safety. Both earn "Strong Buy" and "Strong 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 →Holley Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Holley Inc. designs, manufactures, and markets automotive aftermarket products for auto and truck enthusiasts in the United States, Canada, Europe, and China. The company is headquartered in Bowling Green, Kentucky.
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