China XD Plastics Company Limited (NASDAQ: CXDC) and Dana (NYSE:DAN) are both auto, truck & motorcycle parts – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

11.4% of China XD Plastics Company Limited shares are held by institutional investors. Comparatively, 95.0% of Dana shares are held by institutional investors. 66.3% of China XD Plastics Company Limited shares are held by insiders. Comparatively, 1.6% of Dana shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds 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 0.8%. China XD Plastics Company Limited does not pay a dividend. Dana pays out 5.0% of its earnings in the form of a dividend. Dana has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares China XD Plastics Company Limited and Dana’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
China XD Plastics Company Limited $1.20 billion 0.20 $101.61 million $1.44 3.37
Dana $5.83 billion 0.78 $640.00 million $4.77 6.54

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

Analyst Ratings

This is a summary of current ratings and target prices for China XD Plastics Company Limited and Dana, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China XD Plastics Company Limited 0 0 0 0 N/A
Dana 1 5 3 0 2.22

Dana has a consensus price target of $27.13, suggesting a potential downside of 13.01%. Given Dana’s higher possible upside, analysts plainly believe Dana is more favorable than China XD Plastics Company Limited.

Profitability

This table compares China XD Plastics Company Limited and Dana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China XD Plastics Company Limited 7.16% 13.19% 4.01%
Dana 10.27% 29.34% 6.77%

Volatility & Risk

China XD Plastics Company Limited has a beta of 2.62, suggesting that its share price is 162% more volatile than the S&P 500. Comparatively, Dana has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Summary

Dana beats China XD Plastics Company Limited on 13 of the 16 factors compared between the two stocks.

About China XD Plastics Company Limited

China XD Plastics Company Limited (China XD) is a specialty chemical company. The Company is engaged in the research, development, manufacture and sale of modified plastics for automotive applications in China and to a lesser extent, in Dubai, the United Arab Emirates (UAE). The Company operates in the modified plastics segment. Through its subsidiaries, Heilongjiang Xinda Enterprise Group Company Limited (HLJ Xinda Group) and AL Composites Materials FZE (Dubai Composites), the Company manufactures and sells polymer composite materials (including modified plastics), for automotive applications. The Company’s products categories include Modified Polypropylene (PP), Modified Acrylonitrile Butadiene Styrene (ABS), Modified Polyamide 66 (PA66), Modified Polyamide 6 (PA6), Modified Polyoxymethylenes (POM), Modified Polyphenylene Oxide (PPO), Plastic Alloy, Modified Polyphenylene Sulfide (PPS), Modified Polyimide (PI), Modified Polylactic Acid (PLA) and Poly Ether Ether Ketone (PEEK).

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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