Ferrari (NYSE:RACE) and Dana (NYSE:DAN) Financial Analysis

Ferrari (NYSE:RACE) and Dana (NYSE:DAN) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Earnings and Valuation

This table compares Ferrari and Dana”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrari	$7.23 billion	13.71	$1.65 billion	$9.69	42.17
Dana	$10.28 billion	0.25	-$57.00 million	($0.16)	-124.19

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

Analyst Recommendations

This is a summary of current ratings for Ferrari and Dana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrari	0	1	10	2	3.08
Dana	1	2	6	1	2.70

Ferrari currently has a consensus target price of $505.50, indicating a potential upside of 23.72%. Dana has a consensus target price of $22.57, indicating a potential upside of 13.59%. Given Ferrari’s stronger consensus rating and higher possible upside, equities analysts clearly believe Ferrari is more favorable than Dana.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ferrari	22.95%	45.41%	16.72%
Dana	-0.26%	5.65%	1.02%

Insider & Institutional Ownership

96.8% of Dana shares are owned by institutional investors. 0.5% of Dana shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Ferrari has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Dana has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500.

Summary

Ferrari beats Dana on 11 of the 15 factors compared between the two stocks.

About Ferrari

Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers range, special series, Icona, and supercars; limited edition supercars and one-off cars; and track cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks; develops and sells a range of apparel and accessories; and operates franchised and owned Ferrari stores. The company also sells its products through a network of authorized dealers operating points of sale, as well as through its website. The company was founded in 1947 and is headquartered in Maranello, Italy.

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.