WallStSmart

BorgWarner Inc (BWA)vsO’Reilly Automotive Inc (ORLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

O’Reilly Automotive Inc generates 24% more annual revenue ($17.78B vs $14.32B). ORLY leads profitability with a 14.3% profit margin vs 1.9%. BWA appears more attractively valued with a PEG of 0.38. ORLY 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

ORLY

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 8.0Quality: 4.0
Piotroski: 2/9
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
ORLYOvervalued (-9.1%)

Margin of Safety

-9.1%

Fair Value

$86.25

Current Price

$87.30

$1.05 premium

UndervaluedFair: $86.25Overvalued

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

ORLY2 strengths · Avg: 9.5/10
Return on EquityProfitability
58.6%10/10

Every $100 of equity generates 59 in profit

Market CapQuality
$76.36B9/10

Large-cap with strong market position

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

ORLY3 concerns · Avg: 3.7/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : ORLY

The strongest argument for ORLY centers on Return on Equity, Market Cap.

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 : 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 1.02 — expect wider price swings.

ORLY is growing revenue faster at 7.8% — sustainability is the question.

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

Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

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

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