BorgWarner vs Magna International
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KIRA’s take AI analyst
I put BorgWarner and Magna International side by side, using each one’s latest annual report. Here is what stands out:
- Magna International is the larger business, with $42.0B of revenue in fiscal 2025 against $14.3B for BorgWarner, about 2.9 times as much.
- BorgWarner grew revenue faster (1.6%, against −1.9%).
- BorgWarner turned more of its sales into free cash flow (8.2% FCF margin, against 5.4%).
- Magna International earned a higher return on the capital invested in it (6.7%, against 4.6%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
BorgWarner
BWA
5/10
Revenue growth5-year growthGross marginFCF marginShare count change
Magna International
MGA
5/10
Net marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | BWA FY25 | MGA FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.4B | $18.1B |
| Revenue | $14.3B | $42.0B |
| Free cash flow | $1.2B | $2.3B |
| Net income | $277M | $829M |
| Growth | ||
| Revenue growth | 1.6% | −1.9% |
| 5-year growth | 7.1% | 5.2% |
| Share count change | −3.7% | −1.5% |
| Profitability | ||
| Gross margin | 18.7% | 14.3% |
| Operating margin | 3.7% | — |
| Net margin | 1.9% | 2.0% |
| FCF margin | 8.2% | 5.4% |
| Return on capital | 4.6% | 6.7% |
| Return on equity | 5.1% | 6.9% |
| Balance sheet | ||
| Net debt | $1.6B | $3.1B |
| Net debt / EBITDA | 1.3x | 0.9x |
| Dividends and buybacks | $627M | $681M |
| Valuation & quality | ||
| P/E | 27.2x | — |
| Piotroski F-score | 7 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.