Dana (NYSE:DAN) and China Zenix Auto International (NYSE:ZX) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Dana pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. China Zenix Auto International does not pay a dividend. Dana pays out 15.9% of its earnings in the form of a dividend. Dana has increased its dividend for 3 consecutive years.
93.0% of Dana shares are held by institutional investors. Comparatively, 5.3% of China Zenix Auto International shares are held by institutional investors. 0.5% of Dana shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Dana and China Zenix Auto International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dana||$7.21 billion||0.30||$100.00 million||$2.52||5.90|
|China Zenix Auto International||$435.11 million||0.16||$1.39 million||N/A||N/A|
Dana has higher revenue and earnings than China Zenix Auto International.
This is a breakdown of recent recommendations for Dana and China Zenix Auto International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Zenix Auto International||0||0||0||0||N/A|
Dana currently has a consensus target price of $25.33, indicating a potential upside of 70.37%. Given Dana’s higher possible upside, equities research analysts plainly believe Dana is more favorable than China Zenix Auto International.
This table compares Dana and China Zenix Auto International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Zenix Auto International||0.80%||0.94%||0.61%|
Volatility & Risk
Dana has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, China Zenix Auto International has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Dana beats China Zenix Auto International on 13 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 China Zenix Auto International
China Zenix Auto International Limited designs, manufactures, and sells commercial vehicle wheels to aftermarket and original equipment manufacturers in the People's Republic of China and internationally. The company offers tubed steel wheels, tubeless steel wheels, and off-road steel wheels; aluminum wheels; and wheel components, such as wheel discs. It sells its products directly and through a network of distributors under the Zhengxing, Zhengxing Prince, Haixia, Zhengchang, Lianxing, and CZX brands. The company was formerly known as Richwheel Limited and changed its name to China Zenix Auto International Limited in November 2010. China Zenix Auto International Limited was founded in 2003 and is headquartered in Zhangzhou, the People's Republic of China. China Zenix Auto International Limited is a subsidiary of Newrace Limited.
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