Head to Head Contrast: Federal Screw Works (OTCMKTS:FSCR) vs. Dana (NYSE:DAN)

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

Insider & Institutional Ownership

96.8% of Dana shares are held by institutional investors. 46.2% of Federal Screw Works shares are held by company insiders. Comparatively, 0.5% of Dana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Federal Screw Works and Dana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Screw Works	1.36%	N/A	N/A
Dana	0.64%	6.35%	1.06%

Risk and Volatility

Federal Screw Works has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Dana has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Federal Screw Works and Dana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Screw Works	0	0	0	0	0.00
Dana	0	4	5	0	2.56

Dana has a consensus price target of $24.83, indicating a potential upside of 10.27%. Given Dana’s stronger consensus rating and higher probable upside, analysts clearly believe Dana is more favorable than Federal Screw Works.

Valuation and Earnings

This table compares Federal Screw Works and Dana”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Screw Works	$97.55 million	0.12	$1.62 million	$0.98	8.67
Dana	$10.28 billion	0.26	-$57.00 million	$0.45	50.04

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

Summary

Dana beats Federal Screw Works on 10 of the 14 factors compared between the two stocks.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.

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.