Modine Manufacturing (NYSE: MOD) and Motorcar Parts of America (NASDAQ:MPAA) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Insider and Institutional Ownership
85.4% of Modine Manufacturing shares are owned by institutional investors. 4.4% of Modine Manufacturing shares are owned by insiders. Comparatively, 4.2% of Motorcar Parts of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Modine Manufacturing and Motorcar Parts of America, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||0||3||0||3.00|
Motorcar Parts of America has a consensus target price of $34.67, suggesting a potential upside of 60.42%. Given Motorcar Parts of America’s higher possible upside, analysts plainly believe Motorcar Parts of America is more favorable than Modine Manufacturing.
Valuation & Earnings
This table compares Modine Manufacturing and Motorcar Parts of America’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Modine Manufacturing||$1.50 billion||0.62||$14.20 million||$0.78||23.65|
|Motorcar Parts of America||$421.25 million||0.98||$37.57 million||$2.23||9.69|
Motorcar Parts of America has lower revenue, but higher earnings than Modine Manufacturing. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Modine Manufacturing, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Modine Manufacturing has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
This table compares Modine Manufacturing and Motorcar Parts of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||4.02%||13.00%||7.56%|
Motorcar Parts of America beats Modine Manufacturing on 7 of the 13 factors compared between the two stocks.
Modine Manufacturing Company Profile
Modine Manufacturing Company develops, manufactures, and markets engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer vehicular applications. The company operates through Americas, Europe, Asia, and Building HVAC segments. It offers powertrain cooling products, such as engine cooling modules, radiators, charge air coolers, condensers, oil coolers, fan shrouds, and surge tanks; on-engine cooling products consisting of exhaust gas recirculation coolers, engine oil coolers, fuel coolers, charge air coolers, and intake air coolers; and auxiliary coolers, such as transmission and retarder oil coolers, and power steering coolers, as well as component assemblies, radiators, and battery cooling products. The company also provides gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; hydronic products consisting of commercial fin-tube radiation, cabinet unit heaters, and convectors; roof mounted direct- and indirect-fired makeup air units; commercial packaged rooftop ventilation units; unit ventilators; single packaged vertical units; geothermal and water-source heat pumps; precision air conditioning units for data center applications; air-handling units; chillers; ceiling cassettes; and condensing units. It serves automobile, truck, bus, specialty vehicle, agricultural, industrial, construction equipment, and heating, ventilation, and cooling OEMs; construction architects and contractors; wholesalers of heating equipment; mining equipment and engine manufacturers; industrial manufacturers of material handling equipment, generator sets, and compressors; mechanical contractors; HVAC wholesalers; installers; and end users in commercial and industrial applications. The company also exports its products. Modine Manufacturing Company was founded in 1916 and is headquartered in Racine, Wisconsin.
Motorcar Parts of America Company Profile
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes automotive aftermarket parts. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; brake master cylinders; and other products, such as turbochargers and brake power boosters for import and domestic cars, light trucks, heavy duty, agricultural, and industrial applications. It sells its products to automotive retail chain stores and warehouse distributors; and the professional repair market, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was founded in 1968 and is headquartered in Torrance, California.
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