Financial Analysis: Visteon (VC) vs. Dana (DAN)

Visteon (NYSE: VC) and Dana (NYSE:DAN) are both mid-cap auto, truck & motorcycle parts – nec companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Valuation & Earnings

This table compares Visteon and Dana’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Visteon $3.16 billion 1.30 $75.00 million $5.23 25.21
Dana $5.83 billion 0.83 $640.00 million $4.77 7.03

Dana has higher revenue and earnings than Visteon. Dana is trading at a lower price-to-earnings ratio than Visteon, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Visteon has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Dana has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Insider and Institutional Ownership

96.5% of Dana shares are owned by institutional investors. 0.2% of Visteon shares are owned by company insiders. Comparatively, 1.6% of Dana shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Visteon and Dana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon 4.83% 29.13% 9.06%
Dana 10.27% 29.34% 6.77%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Visteon and Dana, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon 0 5 10 0 2.67
Dana 1 5 3 0 2.22

Visteon presently has a consensus target price of $132.21, indicating a potential upside of 0.28%. Dana has a consensus target price of $29.00, indicating a potential downside of 13.46%. Given Visteon’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Visteon is more favorable than Dana.

Dividends

Dana pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Visteon does not pay a dividend. Dana pays out 5.0% of its earnings in the form of a dividend. Visteon has increased its dividend for 3 consecutive years.

Summary

Visteon beats Dana on 9 of the 17 factors compared between the two stocks.

Visteon Company Profile

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays. It designs and manufacturers vehicle cockpit electronics components, modules and systems. It offers a range of information displays incorporating a sleek profile, craftsmanship and touch sensors, designed to deliver high performance for the automotive market. It offers a range of audio products, including audio head units, and analog and digital radios, which deliver consumer device connectivity. It offers an automotive-grade, integrated domain controller approach, called Smartcore.

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.

Receive News & Ratings for Visteon Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Visteon and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply