Head-To-Head Comparison: Continental (CTTAY) vs. Dana (DAN)

Continental (OTCMKTS: CTTAY) and Dana (NYSE:DAN) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Continental 6.75% 18.68% 7.95%
Dana 1.88% 31.99% 6.78%

Dividends

Continental pays an annual dividend of $0.77 per share and has a dividend yield of 1.6%. Dana pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Continental pays out 22.8% of its earnings in the form of a dividend. Dana pays out 15.9% 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 raised its dividend for 3 consecutive years. Dana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Continental and Dana’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Continental $49.74 billion 0.98 $3.37 billion $3.37 14.50
Dana $7.21 billion 0.42 $100.00 million $2.52 8.29

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

Analyst Ratings

This is a summary of current ratings and target prices for Continental and Dana, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Continental 0 1 6 0 2.86
Dana 0 9 3 0 2.25

Dana has a consensus price target of $29.40, indicating a potential upside of 40.80%. Given Dana’s higher probable upside, analysts clearly believe Dana is more favorable than Continental.

Risk & Volatility

Continental has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Dana has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Continental shares are owned by institutional investors. Comparatively, 95.3% of Dana shares are owned by institutional investors. 1.6% of Dana shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

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

Continental Company Profile

Continental Aktiengesellschaft provides products and services primarily for the automotive industry worldwide. It operates through Chassis&Safety, Powertrain, Interior, Tires, and ContiTech segments. The Chassis&Safety segment develops, produces, and markets intelligent systems to enhance driving safety and vehicle dynamics. This segment offers advanced driver assistance systems, hydraulic brake systems, passive safety and sensoric products, and vehicle dynamics products. The Powertrain segment provides engine systems, fuel and exhaust management systems, hybrid electric vehicles, sensors and actuators, and transmission products. The Interior segment develops and produces information, communication, and network solutions for cars and commercial vehicles, such as body and security, commercial vehicle and aftermarket, infotainment and connectivity, instrumentation and driver HMI, and intelligent transportation systems. The Tires segment provides passenger and light truck equipment, commercial vehicle, and two-wheel tires for use in vehicle manufacture and replacement businesses. The ContiTech segment develops, manufactures, and markets functional parts, and intelligent components and systems made of rubber, plastic, metal, and fabric for the machine and plant engineering, mining, agriculture, automotive, and other industries. This segment provides air spring systems, industrial fluid solutions, mobile fluid systems, and vibration control products, as well as conveyor belts and power transmission products. It also offers design, functional, foam, and compact foils, as well as artificial leather for the furniture and construction industries, as well as automotive sector. The company also provides engineering, business consulting, and fleet services. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.

Dana Company Profile

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.

Receive News & Ratings for Continental Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Continental and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply