Critical Contrast: Dana (DAN) versus Its Rivals

Dana (NYSE:DAN) is one of 148 publicly-traded companies in the “Automobile Components” industry, but how does it compare to its peers? We will compare Dana to related companies based on the strength of its analyst recommendations, dividends, valuation, profitability, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Dana and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dana	1	3	5	0	2.44
Dana Competitors	1087	4496	6135	202	2.46

Dana presently has a consensus price target of $35.00, indicating a potential upside of 52.40%. As a group, “Automobile Components” companies have a potential upside of 71.99%. Given Dana’s peers stronger consensus rating and higher possible upside, analysts plainly believe Dana has less favorable growth aspects than its peers.

Dividends

Dana pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Dana pays out 5.0% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 10.8% and pay out 24.2% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Dana and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dana	$7.78 billion	$85.00 million	2.40
Dana Competitors	$6.56 billion	$73.97 million	3.24

Dana has higher revenue and earnings than its peers. Dana is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Dana has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, Dana’s peers have a beta of 3.88, meaning that their average stock price is 288% more volatile than the S&P 500.

Insider & Institutional Ownership

96.8% of Dana shares are owned by institutional investors. Comparatively, 48.4% of shares of all “Automobile Components” companies are owned by institutional investors. 1.5% of Dana shares are owned by insiders. Comparatively, 19.6% of shares of all “Automobile Components” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Dana and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dana	13.45%	5.03%	1.29%
Dana Competitors	-40.87%	0.04%	-1.91%

Summary

Dana beats its peers on 8 of the 15 factors compared.

Dana Company Profile

Dana Incorporated, together with its subsidiaries, provides power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific. The company operates through four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. It offers drive systems, including axles, driveshafts, transmission, and wheel and track drives; motion systems, such as winches, slew drives, and hub drives; and electrodynamic technologies comprised of motors, inverters, software and control systems, battery-management systems, and fuel cell plates. The company also provides sealing solutions, such as gaskets, seals, cam covers, and oil pan modules; thermal-management technologies, including transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding; and digital solutions that include active and passive system controls, as well as descriptive and predictive analytics. It serves vehicle manufacturers in the global light vehicle, medium/heavy vehicle, and off-highway markets, as well as the stationary industrial market. The company was formerly known as Dana Holding Corporation and changed its name to Dana Incorporated in August 2016. Dana Incorporated was founded in 1904 and is headquartered in Maumee, Ohio.