Dana (NYSE: DAN) and Gentex (NASDAQ:GNTX) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
97.1% of Dana shares are owned by institutional investors. Comparatively, 83.7% of Gentex shares are owned by institutional investors. 1.6% of Dana shares are owned by insiders. Comparatively, 0.6% of Gentex 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.
This table compares Dana and Gentex’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dana||$7.21 billion||0.49||$100.00 million||$2.52||9.60|
|Gentex||$1.79 billion||3.67||$406.79 million||$1.28||18.79|
Gentex has lower revenue, but higher earnings than Dana. Dana is trading at a lower price-to-earnings ratio than Gentex, indicating that it is currently the more affordable of the two stocks.
This table compares Dana and Gentex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Dana has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Gentex has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
This is a summary of recent ratings for Dana and Gentex, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dana presently has a consensus target price of $29.30, suggesting a potential upside of 21.12%. Gentex has a consensus target price of $25.67, suggesting a potential upside of 6.72%. Given Dana’s higher probable upside, research analysts plainly believe Dana is more favorable than Gentex.
Dana pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Gentex pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Dana pays out 15.9% of its earnings in the form of a dividend. Gentex pays out 34.4% 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 3 consecutive years.
Dana beats Gentex on 9 of the 17 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.
Gentex Corporation provides automatic-dimming and non-dimming rearview mirrors, and electronics for the automotive industry; dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. It designs, develops, manufactures, and markets automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and interior and exterior non-automatic-dimming rearview mirrors with electronic features for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers. The company also provides photoelectric smoke detectors and alarms, audible and visual signaling alarms, electrochemical carbon monoxide detectors and alarms, and bells and speakers for use in fire detection systems in office buildings, hotels, and other commercial and residential establishments. Gentex Corporation sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was founded in 1974 and is headquartered in Zeeland, Michigan.
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