Dana (DAN) versus Stoneridge (SRI) Critical Survey
Dana (NYSE: DAN) and Stoneridge (NYSE:SRI) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
This table compares Dana and Stoneridge’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 0.8%. Stoneridge does not pay a dividend. Dana pays out 5.1% of its earnings in the form of a dividend. Dana has raised its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Dana and Stoneridge’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dana||$6.37 billion||0.66||$704.00 million||$4.71||6.21|
|Stoneridge||$759.88 million||0.82||$85.94 million||$2.70||8.22|
Dana has higher revenue and earnings than Stoneridge. Dana is trading at a lower price-to-earnings ratio than Stoneridge, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Dana has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.
Insider & Institutional Ownership
98.6% of Dana shares are held by institutional investors. Comparatively, 87.8% of Stoneridge shares are held by institutional investors. 1.6% of Dana shares are held by company insiders. Comparatively, 5.3% of Stoneridge shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Dana and Stoneridge, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dana presently has a consensus price target of $23.75, suggesting a potential downside of 18.86%. Stoneridge has a consensus price target of $19.50, suggesting a potential downside of 12.16%. Given Stoneridge’s stronger consensus rating and higher possible upside, analysts clearly believe Stoneridge is more favorable than Dana.
Dana beats Stoneridge on 10 of the 17 factors compared between the two stocks.
Dana Company Profile
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.
Stoneridge Company Profile
Stoneridge, Inc. is a designer and manufacturer of engineered electrical and electronic components, modules and systems for the automotive, commercial, motorcycle, off-highway and agricultural vehicle markets. The Company operates through three segments: Control Devices, Electronics and PST. The Company’s Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle and includes product lines, such as sensors, switches, valves, and actuators. The Company’s Electronics segment designs and manufactures electronic instrument clusters, electronic control units and driver information systems. The PST segment is engaged in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle industry. It operated in 25 locations in 12 countries, as of December 31, 2016.
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