Critical Analysis: Dana (DAN) and The Competition

Dana (NYSE: DAN) is one of 32 publicly-traded companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it compare to its peers? We will compare Dana to related companies based on the strength of its earnings, risk, profitability, institutional ownership, dividends, valuation and analyst recommendations.

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 10.27% 29.34% 6.77%
Dana Competitors -95.33% 3.18% -1.08%

Institutional and Insider Ownership

98.4% of Dana shares are held by institutional investors. Comparatively, 71.1% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 1.6% of Dana shares are held by insiders. Comparatively, 12.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Dana has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Dana’s peers have a beta of 1.40, meaning that their average share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Dana and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dana 1 5 3 0 2.22
Dana Competitors 147 922 1448 39 2.54

Dana presently has a consensus target price of $25.88, suggesting a potential downside of 14.26%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 4.29%. Given Dana’s peers stronger consensus rating and higher probable upside, analysts plainly believe Dana has less favorable growth aspects than its peers.

Dividends

Dana pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Dana pays out 5.0% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.9% of their earnings in the form of a dividend. Dana has raised its dividend for 2 consecutive years.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Dana $6.37 billion $704.00 million 6.31
Dana Competitors $5.85 billion $698.05 million 14.77

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.

Summary

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

About Dana

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.

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