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Investors interested in Automotive - Original Equipment stocks are likely familiar with Dana (DAN) and NIU TECHADR (NIU). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Dana has a Zacks Rank of #2 (Buy), while NIU TECHADR has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that DAN likely has seen a stronger improvement to its earnings outlook than NIU has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DAN currently has a forward P/E ratio of 11.67, while NIU has a forward P/E of 54.06. We also note that DAN has a PEG ratio of 1.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NIU currently has a PEG ratio of 1.80.
Another notable valuation metric for DAN is its P/B ratio of 2.11. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NIU has a P/B of 16.71.
These metrics, and several others, help DAN earn a Value grade of A, while NIU has been given a Value grade of D.
DAN stands above NIU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DAN is the superior value option right now.
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Dana Incorporated (DAN) : Free Stock Analysis Report
NIU TECHADR (NIU) : Free Stock Analysis Report
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