Dana (DAN) versus China XD Plastics Company Limited (CXDC) Critical Analysis
Dana (NYSE: DAN) and China XD Plastics Company Limited (NASDAQ:CXDC) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
94.3% of Dana shares are owned by institutional investors. Comparatively, 11.4% of China XD Plastics Company Limited shares are owned by institutional investors. 1.6% of Dana shares are owned by insiders. Comparatively, 66.3% of China XD Plastics Company Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Dana and China XD Plastics Company Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China XD Plastics Company Limited||7.16%||13.19%||4.01%|
Dana pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. China XD Plastics Company Limited does not pay a dividend. Dana pays out 5.0% of its earnings in the form of a dividend. China XD Plastics Company Limited has increased its dividend for 2 consecutive years.
This is a summary of recent ratings and recommmendations for Dana and China XD Plastics Company Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China XD Plastics Company Limited||0||0||0||0||N/A|
Dana currently has a consensus price target of $27.13, indicating a potential downside of 14.41%. Given Dana’s higher probable upside, analysts plainly believe Dana is more favorable than China XD Plastics Company Limited.
Volatility & Risk
Dana has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, China XD Plastics Company Limited has a beta of 2.62, meaning that its share price is 162% more volatile than the S&P 500.
Earnings & Valuation
This table compares Dana and China XD Plastics Company Limited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Dana||$5.83 billion||0.79||$640.00 million||$4.77||6.64|
|China XD Plastics Company Limited||$1.20 billion||0.20||$101.61 million||$1.35||3.59|
Dana has higher revenue and earnings than China XD Plastics Company Limited. China XD Plastics Company Limited is trading at a lower price-to-earnings ratio than Dana, indicating that it is currently the more affordable of the two stocks.
Dana beats China XD Plastics Company Limited on 12 of the 16 factors compared between the two stocks.
Dana Incorporated, formerly Dana Holding Corporation, is a global provider of technology driveline, sealing and thermal-management products. The Company operates in four segments: Light Vehicle Driveline Technologies (Light Vehicle), Commercial Vehicle Driveline Technologies (Commercial Vehicle), Off-Highway Driveline Technologies (Off-Highway) and Power Technologies. It has operations in North America, South America, Europe and Asia pacific. Its Light Vehicle segment offers products, such as front axles, rear axles, driveshafts/propshafts, differentials, torque couplings and modular assemblies. Its Commercial Vehicle segment offers products, such as steer axles, drive axles, drive shafts and tire inflation systems. Its Off-Highway segment offers products, such as front axles, rear axles, drive shafts, transmissions, torque converters, tire inflation systems and electronic controls. Its Power Technologies segment offers products, including gaskets and cover modules.
About China XD Plastics Company Limited
China XD Plastics Company Limited (China XD) is a specialty chemical company. The Company is engaged in the research, development, manufacture and sale of modified plastics for automotive applications in China and to a lesser extent, in Dubai, the United Arab Emirates (UAE). The Company operates in the modified plastics segment. Through its subsidiaries, Heilongjiang Xinda Enterprise Group Company Limited (HLJ Xinda Group) and AL Composites Materials FZE (Dubai Composites), the Company manufactures and sells polymer composite materials (including modified plastics), for automotive applications. The Company’s products categories include Modified Polypropylene (PP), Modified Acrylonitrile Butadiene Styrene (ABS), Modified Polyamide 66 (PA66), Modified Polyamide 6 (PA6), Modified Polyoxymethylenes (POM), Modified Polyphenylene Oxide (PPO), Plastic Alloy, Modified Polyphenylene Sulfide (PPS), Modified Polyimide (PI), Modified Polylactic Acid (PLA) and Poly Ether Ether Ketone (PEEK).
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