BWA vs. RACE: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The comparison between BorgWarner (BWA) and Ferrari (RACE) indicates that BWA is currently a more attractive option for value investors due to its stronger earnings outlook and favorable valuation metrics [1][3][7]. Valuation Metrics - BWA has a forward P/E ratio of 9.57, significantly lower than RACE's forward P/E of 35.58, suggesting BWA is undervalued relative to RACE [5]. - The PEG ratio for BWA is 0.94, while RACE has a PEG ratio of 4.16, indicating that BWA's expected earnings growth is more favorable compared to its price [5]. - BWA's P/B ratio stands at 1.57, contrasting sharply with RACE's P/B of 20.75, further supporting BWA's valuation as more attractive [6]. Analyst Outlook - BWA currently holds a Zacks Rank of 2 (Buy), reflecting an improving earnings estimate revision activity, while RACE has a Zacks Rank of 3 (Hold) [3]. - The positive earnings outlook for BWA enhances its attractiveness in the investment landscape, positioning it as a superior value option compared to RACE [7].