American Axle & Manufacturing Holdings (NYSE: AXL) and Modine Manufacturing Company (NYSE:MOD) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitabiliy and analyst recommendations.
This is a summary of current ratings and price targets for American Axle & Manufacturing Holdings and Modine Manufacturing Company, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Axle & Manufacturing Holdings||2||2||7||0||2.45|
|Modine Manufacturing Company||0||0||1||0||3.00|
American Axle & Manufacturing Holdings currently has a consensus target price of $19.44, suggesting a potential upside of 32.10%. Given American Axle & Manufacturing Holdings’ higher possible upside, research analysts clearly believe American Axle & Manufacturing Holdings is more favorable than Modine Manufacturing Company.
Insider & Institutional Ownership
84.2% of Modine Manufacturing Company shares are held by institutional investors. 1.0% of American Axle & Manufacturing Holdings shares are held by insiders. Comparatively, 3.9% of Modine Manufacturing Company shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares American Axle & Manufacturing Holdings and Modine Manufacturing Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Axle & Manufacturing Holdings||6.40%||51.56%||7.24%|
|Modine Manufacturing Company||0.94%||9.27%||3.18%|
Valuation & Earnings
This table compares American Axle & Manufacturing Holdings and Modine Manufacturing Company’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Axle & Manufacturing Holdings||$4.03 billion||0.41||$643.00 million||$3.26||4.52|
|Modine Manufacturing Company||$1.50 billion||0.54||$125.70 million||$0.29||55.86|
American Axle & Manufacturing Holdings has higher revenue and earnings than Modine Manufacturing Company. American Axle & Manufacturing Holdings is trading at a lower price-to-earnings ratio than Modine Manufacturing Company, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
American Axle & Manufacturing Holdings has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Modine Manufacturing Company has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
American Axle & Manufacturing Holdings beats Modine Manufacturing Company on 9 of the 14 factors compared between the two stocks.
American Axle & Manufacturing Holdings Company Profile
American Axle & Manufacturing Holdings, Inc. (AAM) manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, crossover vehicles, passenger cars and commercial vehicles. Its driveline and drivetrain systems include components that transfer power from the transmission and deliver it to the drive wheels. Its driveline, drivetrain and related products include axles, driveheads, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, transmission parts, electric drive systems and metal-formed products. The Company’s subsidiary, e-AAM Driveline Systems AB (e-AAM), engineers and develops battery electric and hybrid driveline systems to be commercialized for crossover vehicles and passenger cars. As of April 6, 2017, it operated in 17 countries and had approximately 90 manufacturing, engineering and business office facilities around the world.
Modine Manufacturing Company Company Profile
Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications, and for sale into an array of building, industrial and refrigeration markets. The Company’s products include radiators and radiator cores, exhaust gas recirculation coolers, building heating, ventilating and air conditioning (HVAC) equipment, and coils. Its segments include Americas, Europe, Asia and Building HVAC. Its Americas segment consists of vehicular and industrial original equipment products in North America and South America, as well as aftermarket products in South America. Its Europe segment consists of vehicular and industrial original equipment products in Europe. Its Asia segment consists of vehicular and industrial original equipment products in Asia. Its Building HVAC segment consists of building heating, ventilating and air conditioning products throughout the world.
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