Financial Contrast: Dana (NYSE:DAN) vs. Nifco (OTCMKTS:NIFCY)

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

Insider & Institutional Ownership

96.8% of Dana shares are owned by institutional investors. 1.5% of Dana shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Nifco and Dana”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nifco	N/A	N/A	N/A	$244.83	0.05
Dana	$7.50 billion	0.44	$85.00 million	$10.05	3.02

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

Profitability

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

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

Analyst Ratings

This is a summary of current recommendations for Nifco and Dana, as provided by MarketBeat.

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

Dana has a consensus price target of $37.00, indicating a potential upside of 21.99%. Given Dana’s stronger consensus rating and higher possible upside, analysts plainly believe Dana is more favorable than Nifco.

Dividends

Nifco pays an annual dividend of $68.64 per share and has a dividend yield of 518.8%. Dana pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. Nifco pays out 28.0% 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.

Summary

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

About Nifco

Nifco Inc. manufactures and sells industrial plastic parts and components in Japan, rest of Asia, North America, Mexico, and Europe. The company offers driver assistance systems, exterior, interiors, power train, and engine/fuel/transmission products for automobile; and products for motorcycle. It also offers household equipment, such as drawer closers, push latches, earthquake-proof latches, and door dampers; consumer electronics/office automation products that include dampers, free-stop hinges, push latches, and one-way clutches; and fashion/sport products, such as side release buckles, cord locks, and other buckles. In addition, the company offers buckles, fasteners, and speed lace systems; and manufactures and sells beds, as well as imports and sells furniture. Further, it operates automobile and motorcycle online showroom. The company was formerly known as Japan Industry Fastener Inc. and changed its name to Nifco Inc. in December 1970. Nifco Inc. was incorporated in 1946 and is headquartered in Kanagawa, 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.