WallStSmart

BorgWarner Inc (BWA)vsStoneridge Inc (SRI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BorgWarner Inc generates 1562% more annual revenue ($14.32B vs $861.26M). BWA leads profitability with a 1.9% profit margin vs -11.9%. SRI appears more attractively valued with a PEG of 0.26. 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

SRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 2.0Value: 6.7Quality: 5.0
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

Intrinsic value data unavailable for SRI.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BWA2 strengths · Avg: 9.0/10
PEG RatioValuation
0.4510/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

SRI3 strengths · Avg: 10.0/10
PEG RatioValuation
0.2610/10

Growing faster than its price suggests

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
194.8%10/10

Earnings expanding 194.8% YoY

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
40.8x2/10

Premium valuation, high expectations priced in

SRI4 concerns · Avg: 2.0/10
Market CapQuality
$153.81M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-48.4%2/10

ROE of -48.4% — below average capital efficiency

Revenue GrowthGrowth
-6.0%2/10

Revenue declined 6.0%

Profit MarginProfitability
-11.9%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : BWA

The strongest argument for BWA centers on PEG Ratio, Price/Book. PEG of 0.45 suggests the stock is reasonably priced for its growth.

Bull Case : SRI

The strongest argument for SRI centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.26 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 40.8x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Bear Case : SRI

The primary concerns for SRI are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

BWA profiles as a value stock while SRI is a turnaround play — different risk/reward profiles.

SRI carries more volatility with a beta of 1.46 — expect wider price swings.

BWA is growing revenue faster at 3.9% — 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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Stoneridge Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Stoneridge, Inc., designs and manufactures electrical and electronic components, modules, and systems designed for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets in North America, South America, Europe, and internationally. The company is headquartered in Novi, Michigan.

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