Dana (NYSE: DAN) and Visteon (NYSE:VC) are both mid-cap cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Valuation & Earnings

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

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

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.

Volatility & Risk

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

Institutional and Insider Ownership

96.5% of Dana shares are held by institutional investors. 1.6% of Dana shares are held by company insiders. Comparatively, 0.2% of Visteon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Dana and Visteon, as reported by MarketBeat.

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

Dana currently has a consensus target price of $29.00, indicating a potential downside of 13.46%. Visteon has a consensus target price of $132.21, indicating a potential upside of 0.28%. Given Visteon’s stronger consensus rating and higher possible upside, analysts clearly 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. Dana has raised its dividend for 3 consecutive years.

Summary

Dana beats Visteon on 9 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.

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.

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