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DAN vs. NIU: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Dana (DAN - Free Report) and NIU TECHADR (NIU - Free Report) . 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Dana and NIU TECHADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

DAN currently has a forward P/E ratio of 11.77, while NIU has a forward P/E of 55.52. We also note that DAN has a PEG ratio of 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NIU currently has a PEG ratio of 1.85.

Another notable valuation metric for DAN is its P/B ratio of 2.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NIU has a P/B of 22.57.

These are just a few of the metrics contributing to DAN's Value grade of A and NIU's 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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