Auto - Parts
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MGA vs BWA
Revenue, margins, valuation, and 5-year total return — side by side.
Auto - Parts
MGA vs BWA — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Auto - Parts | Auto - Parts |
| Market Cap | $17.59B | $12.64B |
| Revenue (TTM) | $42.18B | $14.33B |
| Net Income (TTM) | $829M | $362M |
| Gross Margin | 13.2% | 18.9% |
| Operating Margin | 6.0% | 9.7% |
| Forward P/E | 9.3x | 11.8x |
| Total Debt | $8.32B | $4.18B |
| Cash & Equiv. | $1.61B | $2.31B |
MGA vs BWA — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Magna International… (MGA) | 100 | 149.6 | +49.6% |
| BorgWarner Inc. (BWA) | 100 | 216.8 | +116.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MGA vs BWA
Each card shows where this stock fits in a portfolio — not just who wins on paper.
MGA is the clearest fit if your priority is income & stability.
- Dividend streak 16 yrs, beta 1.19, yield 3.1%
- Lower P/E (9.3x vs 11.8x)
- 3.1% yield, 16-year raise streak, vs BWA's 0.9%
BWA carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 1.7%, EPS growth -14.7%, 3Y rev CAGR 4.3%
- 124.6% 10Y total return vs MGA's 92.5%
- Lower volatility, beta 1.04, Low D/E 74.4%, current ratio 2.07x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 1.7% revenue growth vs MGA's -0.2% | |
| Value | Lower P/E (9.3x vs 11.8x) | |
| Quality / Margins | 2.5% margin vs MGA's 2.0% | |
| Stability / Safety | Beta 1.04 vs MGA's 1.19 | |
| Dividends | 3.1% yield, 16-year raise streak, vs BWA's 0.9% | |
| Momentum (1Y) | +98.9% vs MGA's +88.5% | |
| Efficiency (ROA) | 2.6% ROA vs MGA's 2.6%, ROIC 12.9% vs 8.6% |
MGA vs BWA — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
MGA vs BWA — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
BWA leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MGA is the larger business by revenue, generating $42.2B annually — 2.9x BWA's $14.3B. Profitability is closely matched — net margins range from 2.5% (BWA) to 2.0% (MGA). On growth, MGA holds the edge at +3.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $42.2B | $14.3B |
| EBITDAEarnings before interest/tax | $4.3B | $2.1B |
| Net IncomeAfter-tax profit | $829M | $362M |
| Free Cash FlowCash after capex | $2.2B | $1.4B |
| Gross MarginGross profit ÷ Revenue | +13.2% | +18.9% |
| Operating MarginEBIT ÷ Revenue | +6.0% | +9.7% |
| Net MarginNet income ÷ Revenue | +2.0% | +2.5% |
| FCF MarginFCF ÷ Revenue | +5.1% | +10.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +3.6% | +0.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -100.5% | +61.1% |
Valuation Metrics
MGA leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 21.1x trailing earnings, MGA trades at a 56% valuation discount to BWA's 47.9x P/E. On an enterprise value basis, MGA's 6.3x EV/EBITDA is more attractive than BWA's 7.1x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $17.6B | $12.6B |
| Enterprise ValueMkt cap + debt − cash | $24.3B | $14.5B |
| Trailing P/EPrice ÷ TTM EPS | 21.11x | 47.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.34x | 11.83x |
| PEG RatioP/E ÷ EPS growth rate | 6.07x | — |
| EV / EBITDAEnterprise value multiple | 6.34x | 7.10x |
| Price / SalesMarket cap ÷ Revenue | 0.41x | 0.88x |
| Price / BookPrice ÷ Book value/share | 1.39x | 2.36x |
| Price / FCFMarket cap ÷ FCF | 9.68x | 10.72x |
Profitability & Efficiency
BWA leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
MGA delivers a 6.5% return on equity — every $100 of shareholder capital generates $7 in annual profit, vs $6 for BWA. MGA carries lower financial leverage with a 0.65x debt-to-equity ratio, signaling a more conservative balance sheet compared to BWA's 0.74x. On the Piotroski fundamental quality scale (0–9), BWA scores 8/9 vs MGA's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +6.5% | +6.2% |
| ROA (TTM)Return on assets | +2.6% | +2.6% |
| ROICReturn on invested capital | +8.6% | +12.9% |
| ROCEReturn on capital employed | +10.9% | +12.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.65x | 0.74x |
| Net DebtTotal debt minus cash | $6.7B | $1.9B |
| Cash & Equiv.Liquid assets | $1.6B | $2.3B |
| Total DebtShort + long-term debt | $8.3B | $4.2B |
| Interest CoverageEBIT ÷ Interest expense | 10.07x | 14.17x |
Total Returns (Dividends Reinvested)
BWA leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in BWA five years ago would be worth $13,758 today (with dividends reinvested), compared to $7,434 for MGA. Over the past 12 months, BWA leads with a +98.9% total return vs MGA's +88.5%. The 3-year compound annual growth rate (CAGR) favors BWA at 16.6% vs MGA's 8.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +16.4% | +31.8% |
| 1-Year ReturnPast 12 months | +88.5% | +98.9% |
| 3-Year ReturnCumulative with dividends | +26.0% | +58.7% |
| 5-Year ReturnCumulative with dividends | -25.7% | +37.6% |
| 10-Year ReturnCumulative with dividends | +92.5% | +124.6% |
| CAGR (3Y)Annualised 3-year return | +8.0% | +16.6% |
Risk & Volatility
Evenly matched — MGA and BWA each lead in 1 of 2 comparable metrics.
Risk & Volatility
BWA is the less volatile stock with a 1.04 beta — it tends to amplify market swings less than MGA's 1.19 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.19x | 1.04x |
| 52-Week HighHighest price in past year | $69.94 | $70.08 |
| 52-Week LowLowest price in past year | $33.50 | $30.62 |
| % of 52W HighCurrent price vs 52-week peak | +90.2% | +87.5% |
| RSI (14)Momentum oscillator 0–100 | 54.1 | 59.9 |
| Avg Volume (50D)Average daily shares traded | 1.6M | 2.3M |
Analyst Outlook
MGA leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates MGA as "Buy" and BWA as "Buy". Consensus price targets imply 13.8% upside for BWA (target: $70) vs 6.6% for MGA (target: $67). For income investors, MGA offers the higher dividend yield at 3.10% vs BWA's 0.90%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $67.30 | $69.80 |
| # AnalystsCovering analysts | 30 | 38 |
| Dividend YieldAnnual dividend ÷ price | +3.1% | +0.9% |
| Dividend StreakConsecutive years of raises | 16 | 1 |
| Dividend / ShareAnnual DPS | $1.96 | $0.55 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.8% | +4.0% |
BWA leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). MGA leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
MGA vs BWA: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is MGA or BWA a better buy right now?
For growth investors, BorgWarner Inc.
(BWA) is the stronger pick with 1. 7% revenue growth year-over-year, versus -0. 2% for Magna International Inc. (MGA). Magna International Inc. (MGA) offers the better valuation at 21. 1x trailing P/E (9. 3x forward), making it the more compelling value choice. Analysts rate Magna International Inc. (MGA) a "Buy" — based on 30 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — MGA or BWA?
On trailing P/E, Magna International Inc.
(MGA) is the cheapest at 21. 1x versus BorgWarner Inc. at 47. 9x. On forward P/E, Magna International Inc. is actually cheaper at 9. 3x.
03Which is the better long-term investment — MGA or BWA?
Over the past 5 years, BorgWarner Inc.
(BWA) delivered a total return of +37. 6%, compared to -25. 7% for Magna International Inc. (MGA). Over 10 years, the gap is even starker: BWA returned +124. 6% versus MGA's +92. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — MGA or BWA?
By beta (market sensitivity over 5 years), BorgWarner Inc.
(BWA) is the lower-risk stock at 1. 04β versus Magna International Inc. 's 1. 19β — meaning MGA is approximately 15% more volatile than BWA relative to the S&P 500. On balance sheet safety, Magna International Inc. (MGA) carries a lower debt/equity ratio of 65% versus 74% for BorgWarner Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — MGA or BWA?
By revenue growth (latest reported year), BorgWarner Inc.
(BWA) is pulling ahead at 1. 7% versus -0. 2% for Magna International Inc. (MGA). On earnings-per-share growth, the picture is similar: BorgWarner Inc. grew EPS -14. 7% year-over-year, compared to -15. 1% for Magna International Inc.. Over a 3-year CAGR, BWA leads at 4. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — MGA or BWA?
Magna International Inc.
(MGA) is the more profitable company, earning 2. 0% net margin versus 1. 9% for BorgWarner Inc. — meaning it keeps 2. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BWA leads at 9. 2% versus 5. 0% for MGA. At the gross margin level — before operating expenses — BWA leads at 18. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is MGA or BWA more undervalued right now?
On forward earnings alone, Magna International Inc.
(MGA) trades at 9. 3x forward P/E versus 11. 8x for BorgWarner Inc. — 2. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BWA: 13. 8% to $69. 80.
08Which pays a better dividend — MGA or BWA?
All stocks in this comparison pay dividends.
Magna International Inc. (MGA) offers the highest yield at 3. 1%, versus 0. 9% for BorgWarner Inc. (BWA).
09Is MGA or BWA better for a retirement portfolio?
For long-horizon retirement investors, BorgWarner Inc.
(BWA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 04), 0. 9% yield, +124. 6% 10Y return). Both have compounded well over 10 years (BWA: +124. 6%, MGA: +92. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between MGA and BWA?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: MGA is a mid-cap income-oriented stock; BWA is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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