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DAN vs. HSAI: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Dana (DAN - Free Report) or Hesai Group Sponsored ADR (HSAI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Dana has a Zacks Rank of #1 (Strong Buy), while Hesai Group Sponsored ADR has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that DAN likely has seen a stronger improvement to its earnings outlook than HSAI has recently. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

DAN currently has a forward P/E ratio of 10.67, while HSAI has a forward P/E of 60.39. We also note that DAN has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HSAI currently has a PEG ratio of 1.60.

Another notable valuation metric for DAN is its P/B ratio of 1.50. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HSAI has a P/B of 3.33.

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

DAN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DAN is likely the superior value option right now.


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