Atmus Filtration Technologies (NYSE:ATMU) versus Dana (NYSE:DAN) Head to Head Survey

Atmus Filtration Technologies (NYSE:ATMU) and Dana (NYSE:DAN) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Volatility & Risk

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

Institutional and Insider Ownership

32.7% of Atmus Filtration Technologies shares are held by institutional investors. Comparatively, 96.8% of Dana shares are held by institutional investors. 0.4% of Atmus Filtration Technologies shares are held by company insiders. Comparatively, 0.9% of Dana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atmus Filtration Technologies	$1.66 billion	1.95	$171.30 million	$2.15	18.11
Dana	$10.44 billion	0.16	$38.00 million	($0.11)	-102.45

Atmus Filtration Technologies has higher earnings, but lower revenue 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.

Dividends

Atmus Filtration Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Dana pays an annual dividend of $0.40 per share and has a dividend yield of 3.5%. Atmus Filtration Technologies pays out 9.3% of its earnings in the form of a dividend. Dana pays out -363.6% 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.

Analyst Ratings

This is a summary of recent recommendations for Atmus Filtration Technologies and Dana, as provided by MarketBeat.

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

Atmus Filtration Technologies currently has a consensus target price of $44.80, suggesting a potential upside of 15.08%. Dana has a consensus target price of $15.29, suggesting a potential upside of 35.63%. Given Dana’s higher probable upside, analysts plainly believe Dana is more favorable than Atmus Filtration Technologies.

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.

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.