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BWA vs GIL

BWA
BorgWarner Inc.
BEARISH
Price
$47.71
Market Cap
$10.32B
Sector
Consumer Cyclical
AI Confidence
78%
GIL
Gildan Activewear Inc.
NEUTRAL
Price
$57.86
Market Cap
$10.72B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
BWA
67.2
GIL
22.51
Forward P/E
BWA
9.28
GIL
10.77
P/B Ratio
BWA
1.7
GIL
3.01
P/S Ratio
BWA
0.73
GIL
2.96
EV/EBITDA
BWA
6.37
GIL
16.7

Profitability

Gross Margin
BWA
18.37%
GIL
32.2%
Operating Margin
BWA
8.41%
GIL
20.67%
Profit Margin
BWA
0.95%
GIL
11.02%
ROE
BWA
3.04%
GIL
15.7%
ROA
BWA
5.44%
GIL
6.86%

Growth

Revenue Growth
BWA
4.1%
GIL
31.3%
Earnings Growth
BWA
-30.1%
GIL
-59.2%

Financial Health

Debt/Equity
BWA
0.66
GIL
1.32
Current Ratio
BWA
2.05
GIL
2.11
Quick Ratio
BWA
1.6
GIL
0.59

Dividends

Dividend Yield
BWA
1.42%
GIL
1.72%
Payout Ratio
BWA
70.42%
GIL
35.18%

AI Verdict

BWA BEARISH

BorgWarner Inc. (BWA) exhibits weak fundamental health with a Piotroski F-Score of 4/9, indicating marginal stability, and lacks an Altman Z-Score, raising concerns about financial distress risk. Despite a bullish analyst recommendation and strong recent price performance (+50.3% 1Y), the company faces declining earnings (YoY EPS -33%), poor profit margins (0.95%), and negative insider sentiment. Valuation metrics are mixed, with a high trailing P/E of 67.20 but a low forward P/E of 9.28, suggesting expectations of recovery. However, deteriorating earnings trends, weak dividend strength, and significant insider selling undermine the bullish case.

Strengths
Forward P/E of 9.28 suggests market expects earnings recovery
Current Ratio of 2.05 and Quick Ratio of 1.60 indicate solid short-term liquidity
Debt/Equity of 0.66 is below sector average of 1.64, signaling conservative leverage
Risks
Piotroski F-Score of 4/9 indicates weak financial health and poor profitability trends
Earnings growth collapsing: YoY -30.1%, Q/Q -32.5%, with recent EPS surprise of -35.7%
Trailing P/E of 67.20 is extremely high, suggesting overvaluation relative to current earnings
GIL NEUTRAL

Gildan Activewear presents a conflicted profile with a Piotroski F-Score of 4/9, indicating stable but mediocre financial health. While the company shows impressive revenue growth of 31.30%, this is starkly contrasted by a severe earnings collapse of -59.20% YoY. The stock is trading at a significant premium to its Graham Number ($33.35) and Intrinsic Value ($17.99), though a low PEG ratio of 0.49 and a bullish analyst target of $83.11 suggest the market is pricing in a strong recovery.

Strengths
Strong top-line revenue growth (31.30% YoY)
Healthy operating margins of 20.67%
Consistent track record of beating earnings estimates (3/4 last 4 quarters)
Risks
Severe decline in YoY earnings growth (-59.20%)
Significant valuation gap between current price ($57.86) and Graham Number ($33.35)
Poor short-term liquidity indicated by a Quick Ratio of 0.59

Compare Another Pair

BWA vs GIL: Head-to-Head Comparison

This page compares BorgWarner Inc. (BWA) and Gildan Activewear Inc. (GIL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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