PHIN vs CMI vs PCAR vs BWA

For growth investors, PHINIA Inc.

(PHIN) is the stronger pick with 2. 4% revenue growth year-over-year, versus -15. 5% for PACCAR Inc (PCAR). PHINIA Inc. (PHIN) offers the better valuation at 24. 2x trailing P/E (13. 5x forward), making it the more compelling value choice. Analysts rate Cummins Inc. (CMI) a "Buy" — based on 51 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, PHINIA Inc.

(PHIN) is the cheapest at 24. 2x versus BorgWarner Inc. at 45. 5x. On forward P/E, BorgWarner Inc. is actually cheaper at 11. 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: PACCAR Inc wins at 1. 58x versus Cummins Inc. 's 2. 30x — a reasonable growth-adjusted valuation.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +168. 7%, compared to +28. 7% for BorgWarner Inc. (BWA). Over 10 years, the gap is even starker: CMI returned +557. 4% versus BWA's +114. 1%. 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), PACCAR Inc (PCAR) is the lower-risk stock at 1.

01β versus Cummins Inc. 's 1. 57β — meaning CMI is approximately 56% more volatile than PCAR relative to the S&P 500. On balance sheet safety, Cummins Inc. (CMI) carries a lower debt/equity ratio of 61% versus 74% for BorgWarner Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), PHINIA Inc.

(PHIN) is pulling ahead at 2. 4% versus -15. 5% for PACCAR Inc (PCAR). On earnings-per-share growth, the picture is similar: PHINIA Inc. grew EPS 84. 1% year-over-year, compared to -42. 9% for PACCAR Inc. Over a 3-year CAGR, CMI leads at 6. 2% 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.

Cummins Inc.

(CMI) is the more profitable company, earning 8. 4% net margin versus 1. 9% for BorgWarner Inc. — meaning it keeps 8. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CMI leads at 11. 5% versus 8. 0% for PHIN. At the gross margin level — before operating expenses — CMI leads at 25. 3%, 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, PACCAR Inc (PCAR) is the more undervalued stock at a PEG of 1. 58x versus Cummins Inc. 's 2. 30x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, BorgWarner Inc. (BWA) trades at 11. 3x forward P/E versus 25. 9x for Cummins Inc. — 14. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BWA: 18. 3% to $68. 80.

All stocks in this comparison pay dividends.

PACCAR Inc (PCAR) offers the highest yield at 3. 8%, versus 0. 9% for BorgWarner Inc. (BWA).

For long-horizon retirement investors, PACCAR Inc (PCAR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

01), 3. 8% yield, +269. 8% 10Y return). Cummins Inc. (CMI) carries a higher beta of 1. 57 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PCAR: +269. 8%, CMI: +557. 4%), 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.

These companies operate in different sectors (PHIN (Consumer Cyclical) and CMI (Industrials) and PCAR (Industrials) and BWA (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: PHIN is a small-cap quality compounder stock; CMI is a mid-cap quality compounder stock; PCAR 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.