Dana (NYSE:DAN – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Risk and Volatility
Dana has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.9, meaning that its stock price is 190% more volatile than the S&P 500.
Profitability
This table compares Dana and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dana | -0.26% | 5.65% | 1.02% |
| Westport Fuel Systems | -16.85% | -16.12% | -7.34% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dana | 0 | 2 | 6 | 0 | 2.75 |
| Westport Fuel Systems | 0 | 1 | 1 | 0 | 2.50 |
Dana presently has a consensus target price of $22.00, indicating a potential upside of 10.64%. Westport Fuel Systems has a consensus target price of $6.93, indicating a potential upside of 197.57%. Given Westport Fuel Systems’ higher possible upside, analysts plainly believe Westport Fuel Systems is more favorable than Dana.
Earnings and Valuation
This table compares Dana and Westport Fuel Systems”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dana | $10.28 billion | 0.25 | -$57.00 million | ($0.16) | -124.28 |
| Westport Fuel Systems | $302.30 million | 0.13 | -$21.84 million | ($2.93) | -0.80 |
Westport Fuel Systems has lower revenue, but higher earnings than Dana. Dana is trading at a lower price-to-earnings ratio than Westport Fuel Systems, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
96.8% of Dana shares are held by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are held by institutional investors. 0.5% of Dana shares are held by company insiders. Comparatively, 0.8% of Westport Fuel Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Dana beats Westport Fuel Systems on 9 of the 14 factors compared between the two stocks.
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.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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