Analyzing Modine Manufacturing (NYSE:MOD) and IOCHPE MAXION S/S (NYSE:IOCJY)

Modine Manufacturing (NYSE:MOD) and IOCHPE MAXION S/S (OTCMKTS:IOCJY) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Valuation & Earnings

This table compares Modine Manufacturing and IOCHPE MAXION S/S’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 $2.21 billion 0.26 $84.80 million $1.57 7.17
IOCHPE MAXION S/S $2.65 billion 0.31 $55.08 million $0.12 15.00

Modine Manufacturing has higher earnings, but lower revenue than IOCHPE MAXION S/S. Modine Manufacturing is trading at a lower price-to-earnings ratio than IOCHPE MAXION S/S, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Modine Manufacturing has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, IOCHPE MAXION S/S has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Dividends

IOCHPE MAXION S/S pays an annual dividend of $0.04 per share and has a dividend yield of 2.2%. Modine Manufacturing does not pay a dividend. IOCHPE MAXION S/S pays out 33.3% of its earnings in the form of a dividend.

Profitability

This table compares Modine Manufacturing and IOCHPE MAXION S/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Modine Manufacturing 3.25% 14.19% 4.92%
IOCHPE MAXION S/S 2.77% 7.27% 2.51%

Analyst Recommendations

This is a breakdown of current recommendations for Modine Manufacturing and IOCHPE MAXION S/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Modine Manufacturing 0 1 1 0 2.50
IOCHPE MAXION S/S 0 0 0 0 N/A

Modine Manufacturing presently has a consensus price target of $12.25, suggesting a potential upside of 8.89%. Given Modine Manufacturing’s higher possible upside, analysts clearly believe Modine Manufacturing is more favorable than IOCHPE MAXION S/S.

Insider & Institutional Ownership

87.4% of Modine Manufacturing shares are held by institutional investors. 5.0% of Modine Manufacturing shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Modine Manufacturing beats IOCHPE MAXION S/S on 11 of the 15 factors compared between the two stocks.

Modine Manufacturing Company Profile

Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications primarily in the United States. The company operates through Americas, Europe, Asia, Commercial and Industrial Solutions, and Building HVAC segments. It offers powertrain cooling products, such as engine cooling assemblies, radiators, condensers, and charge air coolers; auxiliary cooling products, including power steering and transmission oil coolers; component assemblies; radiators for special applications; on-engine cooling products comprising exhaust gas recirculation, engine oil, fuel, and charge and intake air coolers; and chillers and cooling plates for battery thermal management. The company also provides heat-exchanger and microchannel Coils; unit, fluid, transformer oil, and brine coolers, as well as remote condensers; and coatings to protect against corrosion. In addition, it offers gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; hydronic products, such as 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; precision air conditioning units for data center applications; air-handling units; chillers; ceiling cassettes; hybrid fan coils; and condensing units. It primarily serves automobile, truck, bus, and specialty vehicle OEMs; agricultural, industrial, and construction equipment OEMs; commercial and industrial equipment OEMs; heating, ventilation, and cooling OEMs; construction architects and contractors; and wholesalers of heating equipment. The company also exports its products. Modine Manufacturing Company was founded in 1916 and is headquartered in Racine, Wisconsin.

IOCHPE MAXION S/S Company Profile

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for light and commercial vehicles in North America, South America, Europe, and internationally. It operates through two segments, Wheels and Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-up trucks, and SUVs, as well as light and medium-sized commercial vehicles; and light aluminum wheels for vehicles. It also provides heavy structural components, including frames, sidebars, and crossbars; and metal stampings for commercial vehicles, as well as agricultural machinery and aluminum wheels for light vehicles. In addition, the company offers light structural and automotive components, such as metal stampings for passenger vehicles, brake levers, pedal sets, welded assemblies, structural parts, and other automotive components. Further, it produces freight cars, railway wheels, and castings, as well as industrial castings and freight cars. Iochpe-Maxion S.A. was founded in 1918 and is headquartered in Cruzeiro, Brazil.

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