American Axle & Manufacturing (NYSE:DCH – Get Free Report) and Dana (NYSE:DAN – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
91.4% of American Axle & Manufacturing shares are held by institutional investors. Comparatively, 96.8% of Dana shares are held by institutional investors. 2.1% of American Axle & Manufacturing shares are held by insiders. Comparatively, 1.5% of Dana shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares American Axle & Manufacturing and Dana”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Axle & Manufacturing | $8.22 billion | 0.20 | -$19.70 million | ($1.08) | -6.46 |
| Dana | $7.66 billion | 0.45 | $85.00 million | $10.05 | 3.19 |
Dana has lower revenue, but higher earnings than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Dana, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
American Axle & Manufacturing has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Dana has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for American Axle & Manufacturing and Dana, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Axle & Manufacturing | 1 | 5 | 3 | 0 | 2.22 |
| Dana | 1 | 3 | 4 | 0 | 2.38 |
American Axle & Manufacturing presently has a consensus price target of $9.71, suggesting a potential upside of 39.17%. Dana has a consensus price target of $37.00, suggesting a potential upside of 15.48%. Given American Axle & Manufacturing’s higher probable upside, analysts plainly believe American Axle & Manufacturing is more favorable than Dana.
Profitability
This table compares American Axle & Manufacturing and Dana’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Axle & Manufacturing | -2.01% | 15.94% | 2.03% |
| Dana | 14.55% | 4.07% | 0.88% |
Summary
Dana beats American Axle & Manufacturing on 9 of the 14 factors compared between the two stocks.
About American Axle & Manufacturing
American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.
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.
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