Autoliv (NYSE: ALV) and Dana (NYSE:DAN) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Earnings & Valuation

This table compares Autoliv and Dana’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Autoliv $10.22 billion 1.05 $1.28 billion $6.32 19.62
Dana $6.37 billion 0.64 $704.00 million $4.71 5.96

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

Institutional and Insider Ownership

32.8% of Autoliv shares are held by institutional investors. Comparatively, 98.6% of Dana shares are held by institutional investors. 0.3% of Autoliv shares are held by company insiders. Comparatively, 1.6% of Dana shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Autoliv 5.44% 13.96% 6.75%
Dana 10.80% 30.79% 6.84%

Dividends

Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Dana pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Autoliv pays out 38.0% of its earnings in the form of a dividend. Dana pays out 5.1% 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. Autoliv has increased its dividend for 2 consecutive years and Dana has increased its dividend for 7 consecutive years.

Risk and Volatility

Autoliv has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Dana has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Autoliv and Dana, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autoliv 4 12 6 0 2.09
Dana 1 5 3 0 2.22

Autoliv presently has a consensus price target of $111.65, indicating a potential downside of 9.95%. Dana has a consensus price target of $23.13, indicating a potential downside of 17.65%. Given Autoliv’s higher possible upside, equities research analysts plainly believe Autoliv is more favorable than Dana.

Summary

Dana beats Autoliv on 9 of the 17 factors compared between the two stocks.

About Autoliv

Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.

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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