Atmus Filtration Technologies (NYSE:ATMU) & Dana (NYSE:DAN) Head to Head Analysis

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

Profitability

This table compares Dana and Atmus Filtration Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dana	-0.15%	3.48%	0.70%
Atmus Filtration Technologies	10.84%	134.28%	17.61%

Dividends

Dana pays an annual dividend of $0.40 per share and has a dividend yield of 3.5%. Atmus Filtration Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Dana pays out -363.6% of its earnings in the form of a dividend. Atmus Filtration Technologies pays out 9.3% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Dana has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, Atmus Filtration Technologies has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Valuation and Earnings

This table compares Dana and Atmus Filtration Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dana	$10.44 billion	0.16	$38.00 million	($0.11)	-105.09
Atmus Filtration Technologies	$1.66 billion	1.96	$171.30 million	$2.15	18.22

Atmus Filtration Technologies has lower revenue, but higher earnings than Dana. Dana is trading at a lower price-to-earnings ratio than Atmus Filtration Technologies, 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, 32.7% of Atmus Filtration Technologies shares are held by institutional investors. 0.9% of Dana shares are held by insiders. Comparatively, 0.4% of Atmus Filtration Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Dana and Atmus Filtration Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dana	1	2	5	0	2.50
Atmus Filtration Technologies	0	1	4	0	2.80

Dana presently has a consensus price target of $15.29, indicating a potential upside of 32.23%. Atmus Filtration Technologies has a consensus price target of $44.80, indicating a potential upside of 14.34%. Given Dana’s higher probable upside, equities research analysts plainly believe Dana is more favorable than Atmus Filtration Technologies.

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 Atmus Filtration Technologies

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; and fuel water separators and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users. Its products are used in on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. The company was founded in 1958 and is headquartered in Nashville, Tennessee.