JTEKT (OTCMKTS:JTEKY) vs. Dana (NYSE:DAN) Critical Survey

JTEKT (OTCMKTS:JTEKY) and Dana (NYSE:DAN) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for JTEKT and Dana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JTEKT	0	0	0	0	0.00
Dana	1	3	4	0	2.38

Dana has a consensus target price of $37.00, indicating a potential upside of 20.68%. Given Dana’s stronger consensus rating and higher possible upside, analysts plainly believe Dana is more favorable than JTEKT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JTEKT	N/A	N/A	N/A
Dana	14.55%	4.07%	0.88%

Dividends

JTEKT pays an annual dividend of $72.24 per share and has a dividend yield of 183.1%. Dana pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. JTEKT pays out 19.5% of its earnings in the form of a dividend. Dana pays out 4.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

0.0% of JTEKT shares are held by institutional investors. Comparatively, 96.8% of Dana shares are held by institutional investors. 1.5% of Dana 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.

Valuation and Earnings

This table compares JTEKT and Dana”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JTEKT	N/A	N/A	N/A	$370.33	0.11
Dana	$7.50 billion	0.44	$85.00 million	$10.05	3.05

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

Summary

Dana beats JTEKT on 11 of the 13 factors compared between the two stocks.

About JTEKT

JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc. It offers steering systems, such as electric power steering, hydraulic power steering, and units/components; driveline components, including driveshaft, propeller shaft, spider, couplings, and Torsen limited slip differential products; wheels, such as hub units; engine and peripheral parts that include damper pulley and drive plates; and transmission products, such as electric pump for idle-stop system, shifters, and solenoid valves. The company also provides sensor systems comprising peripherals for social infrastructures; products for the research and development field, including semiconductor transducers, load cells, DC amplifiers, and pressure transducer for welding guns and indicators; medical equipment, such as pressure sensors for dialyzers; and heat-resistant lithium-ion capacitors. In addition, it offers ball and roller bearings; and oil seals and precision mechanical equipments. Further, the company provides machine tools, such as grinders, machining and gear skiving centers, and cutting machines. It offers its products under the JTEKT, KOYO, and TOYODA brands. The company operates in Japan, Africa, Europe, North America, Asia, Oceania, South America, and internationally. JTEKT Corporation was founded in 1921 and is headquartered in Aichi, Japan.

About Dana

Dana Incorporated, together with its subsidiaries, provides power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific. The company operates through four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. It offers drive systems, including axles, driveshafts, transmission, and wheel and track drives; motion systems, such as winches, slew drives, and hub drives; and electrodynamic technologies comprised of motors, inverters, software and control systems, battery-management systems, and fuel cell plates. The company also provides sealing solutions, such as gaskets, seals, cam covers, and oil pan modules; thermal-management technologies, including transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding; and digital solutions that include active and passive system controls, as well as descriptive and predictive analytics. It serves vehicle manufacturers in the global light vehicle, medium/heavy vehicle, and off-highway markets, as well as the stationary industrial market. The company was formerly known as Dana Holding Corporation and changed its name to Dana Incorporated in August 2016. Dana Incorporated was founded in 1904 and is headquartered in Maumee, Ohio.