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BWA vs HD

BWA
BorgWarner Inc.
BEARISH
Price
$47.71
Market Cap
$10.32B
Sector
Consumer Cyclical
AI Confidence
78%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
BWA
67.2
HD
23.1
Forward P/E
BWA
9.28
HD
20.17
P/B Ratio
BWA
1.7
HD
25.57
P/S Ratio
BWA
0.73
HD
1.99
EV/EBITDA
BWA
6.37
HD
15.68

Profitability

Gross Margin
BWA
18.37%
HD
33.32%
Operating Margin
BWA
8.41%
HD
10.08%
Profit Margin
BWA
0.95%
HD
8.6%
ROE
BWA
3.04%
HD
145.54%
ROA
BWA
5.44%
HD
12.98%

Growth

Revenue Growth
BWA
4.1%
HD
-3.8%
Earnings Growth
BWA
-30.1%
HD
-14.2%

Financial Health

Debt/Equity
BWA
0.66
HD
5.14
Current Ratio
BWA
2.05
HD
1.06
Quick Ratio
BWA
1.6
HD
0.21

Dividends

Dividend Yield
BWA
1.42%
HD
2.83%
Payout Ratio
BWA
70.42%
HD
64.65%

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
HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14

Compare Another Pair

BWA vs HD: Head-to-Head Comparison

This page compares BorgWarner Inc. (BWA) and The Home Depot, Inc. (HD) 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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