WallStSmart

BorgWarner Inc (BWA)vsModine Manufacturing Company (MOD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 398% more annual revenue ($14.32B vs $2.87B). MOD leads profitability with a 3.4% 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

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 7.3Quality: 8.0
Piotroski: 5/9Altman Z: 2.76

MOD

Buy

55

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 4.7Quality: 7.8
Piotroski: 6/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWASignificantly Overvalued (-659.8%)

Margin of Safety

-659.8%

Fair Value

$8.70

Current Price

$52.23

$43.53 premium

UndervaluedFair: $8.70Overvalued
MODSignificantly Overvalued (-1693.3%)

Margin of Safety

-1693.3%

Fair Value

$12.24

Current Price

$196.55

$184.31 premium

UndervaluedFair: $12.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BWA2 strengths · Avg: 9.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

MOD3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
30.5%10/10

Revenue surging 30.5% year-over-year

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Areas to Watch

BWA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

P/E RatioValuation
40.5x2/10

Premium valuation, high expectations priced in

MOD4 concerns · Avg: 2.8/10
Price/BookValuation
9.2x4/10

Trading at 9.2x book value

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

P/E RatioValuation
108.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.5%2/10

Earnings declined 3.5%

Comparative Analysis Report

WallStSmart Research

Bull 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 : MOD

The strongest argument for MOD centers on Revenue Growth, Altman Z-Score, PEG Ratio. Revenue growth of 30.5% demonstrates continued momentum. PEG of 0.81 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 : MOD

The primary concerns for MOD are Price/Book, Profit Margin, P/E Ratio. A P/E of 108.9x leaves little room for execution misses. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

BWA profiles as a value stock while MOD is a hypergrowth play — different risk/reward profiles.

MOD carries more volatility with a beta of 1.68 — expect wider price swings.

MOD is growing revenue faster at 30.5% — sustainability is the question.

BWA generates stronger free cash flow (486M), providing more financial flexibility.

Bottom Line

BWA scores higher overall (58/100 vs 55/100). 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.

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Modine Manufacturing Company

CONSUMER CYCLICAL · AUTO PARTS · USA

Modine Manufacturing Company provides heat transfer systems and heat transfer components designed for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications. The company is headquartered in Racine, Wisconsin.

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