WallStSmart

BorgWarner Inc (BWA)vsStandard Motor Products Inc (SMP)

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Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 672% more annual revenue ($14.24B vs $1.85B). SMP leads profitability with a 3.8% profit margin vs 3.4%. BWA appears more attractively valued with a PEG of 0.24. BWA earns a higher WallStSmart Score of 64/100 (C+).

BWA

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 5.5Value: 8.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.56

SMP

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 7.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BWAUndervalued (+50.3%)

Margin of Safety

+50.3%

Fair Value

$103.09

Current Price

$51.26

$51.83 discount

UndervaluedFair: $103.09Overvalued
SMPOvervalued (-13.7%)

Margin of Safety

-13.7%

Fair Value

$39.39

Current Price

$43.95

$4.56 premium

UndervaluedFair: $39.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BWA3 strengths · Avg: 8.7/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
47.9%8/10

Earnings expanding 47.9% YoY

SMP3 strengths · Avg: 9.3/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.538/10

Growing faster than its price suggests

Areas to Watch

BWA2 concerns · Avg: 2.5/10
Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

SMP3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.8%4/10

1.8% revenue growth

Market CapQuality
$993.32M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : BWA

The strongest argument for BWA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.24 suggests the stock is reasonably priced for its growth.

Bull Case : SMP

The strongest argument for SMP centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bear Case : BWA

The primary concerns for BWA are Profit Margin, Revenue Growth. Thin 3.4% margins leave little buffer for downturns.

Bear Case : SMP

The primary concerns for SMP are Revenue Growth, Market Cap, Profit Margin. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

BWA carries more volatility with a beta of 1.18 — expect wider price swings.

SMP is growing revenue faster at 1.8% — sustainability is the question.

BWA generates stronger free cash flow (195M), providing more financial flexibility.

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

Bottom Line

BWA scores higher overall (64/100 vs 63/100). 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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Standard Motor Products Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Standard Motor Products, Inc. manufactures and distributes motor vehicle replacement parts to the automotive aftermarket industry. The company is headquartered in Long Island City, New York.

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