Financial Review: Dana (DAN) vs. Delphi Technologies (DLPH)
Dana (NYSE:DAN) and Delphi Technologies (NYSE:DLPH) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
This table compares Dana and Delphi Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Dana pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Delphi Technologies pays an annual dividend of $0.68 per share and has a dividend yield of 4.1%. Dana pays out 15.9% of its earnings in the form of a dividend. Delphi Technologies pays out 13.2% 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. Dana has increased its dividend for 4 consecutive years. Delphi Technologies is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Dana and Delphi Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dana||$7.21 billion||0.32||$100.00 million||$2.52||6.33|
|Delphi Technologies||$4.85 billion||0.30||$285.00 million||$5.15||3.20|
Delphi Technologies has lower revenue, but higher earnings than Dana. Delphi Technologies is trading at a lower price-to-earnings ratio than Dana, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Dana and Delphi Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dana presently has a consensus price target of $22.10, suggesting a potential upside of 38.56%. Delphi Technologies has a consensus price target of $32.87, suggesting a potential upside of 99.43%. Given Delphi Technologies’ higher possible upside, analysts plainly believe Delphi Technologies is more favorable than Dana.
Insider & Institutional Ownership
93.1% of Dana shares are held by institutional investors. Comparatively, 88.3% of Delphi Technologies shares are held by institutional investors. 0.5% of Dana shares are held by insiders. Comparatively, 0.1% of Delphi Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Delphi Technologies beats Dana on 8 of the 15 factors compared between the two stocks.
Dana Incorporated provides drive and motion products, sealing solutions, thermal-management technologies, and fluid-power products to vehicle and engine manufacturer in North America, Europe, South America, and the Asia Pacific. The company operates in four segments: Light Vehicle Driveline Technologies, Commercial Vehicle Driveline Technologies, Off-Highway Driveline Technologies, and Power Technologies. The Light Vehicle Driveline Technologies segment offers front axles, rear axles, driveshafts/propshafts, differentials, torque couplings, modular and axle tube assemblies, rear drive and power transfer units, axle shafts, and EV gearboxes for use in light trucks, sport utility vehicles, crossover utility vehicles, vans, and passenger cars. The Commercial Vehicle Driveline Technologies segment provides steer and drive axles, driveshafts, and tire inflation systems for medium and heavy duty trucks, buses, and specialty vehicles. The Off-Highway Driveline Technologies segment manufactures front and rear axles, driveshafts, transmissions, torque converters, wheel, track, winch planetary drives, industrial gear boxes, tire inflation systems, and electronic controls, as well as hydraulic valves, pumps, and motors for use in construction, earth moving, agricultural, mining, forestry, material handling, and industrial stationary applications. The Power Technologies segment offers gaskets, cover modules, heat shields, engine sealing systems, cooling products, and heat transfer products for light vehicle, medium/heavy vehicle, and off-highway markets. 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.
About Delphi Technologies
Delphi Technologies PLC engages in the design, development, and manufacture of integrated powertrain technologies worldwide. The company operates through two segments, Powertrain Systems and Delphi Technologies Aftermarket. The Powertrain Systems segment provides fuel injection systems, as well as other powertrain products comprising valvetrain, fuel delivery modules, ignition coils, canisters, sensors, valves, and actuators; and electronic control modules with the corresponding software, algorithms, and calibration that provide centralized management of various powertrain components. It also provides power electronics solutions, including supervisory controllers and software, and DC/DC converters and inverters. This segment sells its portfolio of technologies and solutions for propulsion systems to original equipment manufacturers of light vehicles, including passenger cars, trucks, vans, and sport-utility vehicles; and commercial vehicles, such as light-duty, medium-duty, and heavy-duty trucks, as well as commercial vans, buses, and off-highway vehicles. The Delphi Technologies Aftermarket segment manufactures and sells aftermarket products, such as cover fuel injection, electronics and engine management, maintenance and test equipment, and vehicle diagnostics to independent aftermarket and original equipment service customers, and independent retailers and wholesale distributors. The company is based in London, the United Kingdom.
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