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BWA vs MGM

BWA
BorgWarner Inc.
BEARISH
Price
$47.71
Market Cap
$10.32B
Sector
Consumer Cyclical
AI Confidence
78%
MGM
MGM Resorts International
NEUTRAL
Price
$39.27
Market Cap
$10.05B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
BWA
67.2
MGM
51.67
Forward P/E
BWA
9.28
MGM
16.97
P/B Ratio
BWA
1.7
MGM
4.17
P/S Ratio
BWA
0.73
MGM
0.57
EV/EBITDA
BWA
6.37
MGM
17.06

Profitability

Gross Margin
BWA
18.37%
MGM
44.42%
Operating Margin
BWA
8.41%
MGM
7.06%
Profit Margin
BWA
0.95%
MGM
1.17%
ROE
BWA
3.04%
MGM
14.89%
ROA
BWA
5.44%
MGM
2.0%

Growth

Revenue Growth
BWA
4.1%
MGM
6.0%
Earnings Growth
BWA
-30.1%
MGM
115.7%

Financial Health

Debt/Equity
BWA
0.66
MGM
9.63
Current Ratio
BWA
2.05
MGM
1.23
Quick Ratio
BWA
1.6
MGM
1.03

Dividends

Dividend Yield
BWA
1.42%
MGM
--
Payout Ratio
BWA
70.42%
MGM
0.0%

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
MGM NEUTRAL

MGM presents a dichotomy between explosive earnings recovery and precarious financial leverage. While the Piotroski F-Score of 4/9 indicates stable but mediocre financial health, the company is trading at a significant premium to its Graham Number ($12.68) and Intrinsic Value ($22.42). Massive YoY earnings growth (115.7%) and a favorable PEG ratio (0.97) suggest strong momentum, but these are offset by an alarming Debt/Equity ratio of 9.63 and thin net profit margins.

Strengths
Explosive earnings growth (YoY EPS +115.7%)
Attractive PEG ratio (0.97) suggesting growth justifies valuation
Strong earnings beat track record (3/4 recent quarters)
Risks
Extreme leverage with a Debt/Equity ratio of 9.63
Very thin net profit margins (1.17%)
Current price ($39.27) is significantly overvalued relative to Graham and Intrinsic baselines

Compare Another Pair

BWA vs MGM: Head-to-Head Comparison

This page compares BorgWarner Inc. (BWA) and MGM Resorts International (MGM) 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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