Dana (NYSE: DAN) and Superior Industries International (NYSE:SUP) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Dana has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Profitability

This table compares Dana and Superior Industries International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dana 10.80% 30.79% 6.84%
Superior Industries International 1.23% 9.54% 5.01%

Valuation and Earnings

This table compares Dana and Superior Industries International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dana $6.37 billion 0.53 $704.00 million $4.71 4.91
Superior Industries International $778.75 million 0.46 $76.24 million $0.25 57.60

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

Institutional and Insider Ownership

97.6% of Dana shares are owned by institutional investors. Comparatively, 82.4% of Superior Industries International shares are owned by institutional investors. 1.6% of Dana shares are owned by insiders. Comparatively, 1.5% of Superior Industries International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Dana pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. Dana pays out 5.1% of its earnings in the form of a dividend. Superior Industries International pays out 144.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Superior Industries International has increased its dividend for 2 consecutive years. Superior Industries International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Dana and Superior Industries International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dana 1 5 3 0 2.22
Superior Industries International 0 1 2 0 2.67

Dana presently has a consensus target price of $23.13, suggesting a potential downside of 0.02%. Superior Industries International has a consensus target price of $24.67, suggesting a potential upside of 71.30%. Given Superior Industries International’s stronger consensus rating and higher probable upside, analysts clearly believe Superior Industries International is more favorable than Dana.

Summary

Dana beats Superior Industries International on 12 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.

Superior Industries International Company Profile

Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.

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