GTX vs BWA vs LEA vs DAN vs MGA

For growth investors, Garrett Motion Inc.

(GTX) is the stronger pick with 3. 1% revenue growth year-over-year, versus -27. 1% for Dana Incorporated (DAN). Lear Corporation (LEA) offers the better valuation at 17. 1x trailing P/E (9. 6x forward), making it the more compelling value choice. Analysts rate BorgWarner Inc. (BWA) a "Buy" — based on 38 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.

On trailing P/E, Lear Corporation (LEA) is the cheapest at 17.

1x versus Dana Incorporated at 54. 2x. On forward P/E, Magna International Inc. is actually cheaper at 9. 3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Lear Corporation wins at 0. 38x versus Magna International Inc. 's 2. 69x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Garrett Motion Inc.

(GTX) delivered a total return of +391. 5%, compared to -25. 7% for Magna International Inc. (MGA). Over 10 years, the gap is even starker: DAN returned +212. 8% versus LEA's +42. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), BorgWarner Inc.

(BWA) is the lower-risk stock at 1. 04β versus Garrett Motion Inc. 's 1. 56β — meaning GTX is approximately 51% 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 4% for Dana Incorporated — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Garrett Motion Inc.

(GTX) is pulling ahead at 3. 1% versus -27. 1% for Dana Incorporated (DAN). On earnings-per-share growth, the picture is similar: Dana Incorporated grew EPS 264. 1% 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.

Garrett Motion Inc.

(GTX) is the more profitable company, earning 8. 6% net margin versus 1. 1% for Dana Incorporated — meaning it keeps 8. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GTX leads at 13. 8% versus 2. 8% for DAN. At the gross margin level — before operating expenses — GTX leads at 24. 5%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Lear Corporation (LEA) is the more undervalued stock at a PEG of 0. 38x versus Magna International Inc. 's 2. 69x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Magna International Inc. (MGA) trades at 9. 3x forward P/E versus 15. 3x for Garrett Motion Inc. — 5. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BWA: 13. 8% to $69. 80.

All stocks in this comparison pay dividends.

Magna International Inc. (MGA) offers the highest yield at 3. 1%, versus 0. 9% for Garrett Motion Inc. (GTX).

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). Garrett Motion Inc. (GTX) carries a higher beta of 1. 56 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (BWA: +124. 6%, GTX: +53. 0%), 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.

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: GTX is a small-cap quality compounder stock; BWA is a mid-cap quality compounder stock; LEA is a small-cap deep-value stock; DAN is a small-cap quality compounder stock; MGA is a mid-cap income-oriented 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.