Dana (DAN) vs. Autoliv (ALV) Financial Contrast
Dana (NYSE: DAN) and Autoliv (NYSE:ALV) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Risk and Volatility
Dana has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.
This is a breakdown of recent ratings for Dana and Autoliv, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dana presently has a consensus target price of $23.13, indicating a potential downside of 16.21%. Autoliv has a consensus target price of $111.65, indicating a potential downside of 10.83%. Given Autoliv’s higher possible upside, analysts clearly believe Autoliv is more favorable than Dana.
Earnings and Valuation
This table compares Dana and Autoliv’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dana||$6.37 billion||0.63||$704.00 million||$4.71||5.86|
|Autoliv||$10.22 billion||1.06||$1.28 billion||$6.32||19.81|
Autoliv has higher revenue and earnings than Dana. Dana is trading at a lower price-to-earnings ratio than Autoliv, indicating that it is currently the more affordable of the two stocks.
This table compares Dana and Autoliv’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Dana pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Dana pays out 5.1% of its earnings in the form of a dividend. Autoliv pays out 38.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dana has raised its dividend for 2 consecutive years and Autoliv has raised its dividend for 7 consecutive years. Autoliv is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
98.6% of Dana shares are owned by institutional investors. Comparatively, 32.8% of Autoliv shares are owned by institutional investors. 1.6% of Dana shares are owned by insiders. Comparatively, 0.3% of Autoliv shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Autoliv beats Dana on 9 of the 17 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.
Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.
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