BorgWarner Inc (BWA)vsMagna International Inc (MGA)
BWA
BorgWarner Inc
$52.23
-0.38%
CONSUMER CYCLICAL · Cap: $11.08B
MGA
Magna International Inc
$52.19
-0.78%
CONSUMER CYCLICAL · Cap: $15.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Magna International Inc generates 193% more annual revenue ($42.01B vs $14.32B). MGA leads profitability with a 2.0% profit margin vs 1.9%. BWA appears more attractively valued with a PEG of 0.38. BWA earns a higher WallStSmart Score of 58/100 (C).
BWA
Buy58
out of 100
Grade: C
MGA
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-659.8%
Fair Value
$8.70
Current Price
$52.23
$43.53 premium
Margin of Safety
-185.2%
Fair Value
$20.26
Current Price
$52.19
$31.93 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Reasonable price relative to book value
Growing faster than its price suggests
Generating 1.3B 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
2.1% revenue growth
ROE of 7.1% — below average capital efficiency
2.0% margin — thin
Earnings declined 35.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : BWA
The strongest argument for BWA centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.
Bull Case : MGA
The strongest argument for MGA centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.51 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 40.5x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Bear Case : MGA
The primary concerns for MGA are Revenue Growth, Return on Equity, Profit Margin. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
MGA carries more volatility with a beta of 1.83 — expect wider price swings.
BWA is growing revenue faster at 3.9% — sustainability is the question.
MGA generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BWA scores higher overall (58/100 vs 56/100). 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 →Magna International Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.
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