BorgWarner Inc (BWA)vsO’Reilly Automotive Inc (ORLY)
BWA
BorgWarner Inc
$71.31
+3.33%
CONSUMER CYCLICAL · Cap: $14.73B
ORLY
O’Reilly Automotive Inc
$89.23
+1.33%
CONSUMER CYCLICAL · Cap: $74.34B
Smart Verdict
WallStSmart Research — data-driven comparison
O’Reilly Automotive Inc generates 27% more annual revenue ($18.21B vs $14.33B). ORLY leads profitability with a 14.3% profit margin vs 2.5%. BWA appears more attractively valued with a PEG of 0.61. BWA earns a higher WallStSmart Score of 61/100 (C+).
BWA
Buy61
out of 100
Grade: C+
ORLY
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.4%
Fair Value
$104.75
Current Price
$71.31
$33.44 discount
Margin of Safety
+75.6%
Fair Value
$366.36
Current Price
$89.23
$277.13 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
Every $100 of equity generates 59 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
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
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : BWA
The strongest argument for BWA centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.61 suggests the stock is reasonably priced for its growth.
Bull Case : ORLY
The strongest argument for ORLY centers on Return on Equity, Debt/Equity, Market Cap. Revenue growth of 10.2% demonstrates continued momentum.
Bear Case : BWA
The primary concerns for BWA are Revenue Growth, Return on Equity, Profit Margin. A P/E of 41.8x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.
Bear Case : ORLY
The primary concerns for ORLY are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
BWA carries more volatility with a beta of 0.98 — expect wider price swings.
ORLY is growing revenue faster at 10.2% — sustainability is the question.
ORLY generates stronger free cash flow (788M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BWA scores higher overall (61/100 vs 60/100). ORLY offers better value entry with a 75.6% 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 →O’Reilly Automotive Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
O'Reilly Auto Parts is an American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-yourself customers.
Compare with Other AUTO PARTS Stocks
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