Modine Manufacturing (NYSE: MOD) and Clean Diesel Technologies (NASDAQ:CDTI) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Modine Manufacturing and Clean Diesel Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Modine Manufacturing 1.35% 11.16% 3.54%
Clean Diesel Technologies -72.31% -116.29% -34.01%

Valuation and Earnings

This table compares Modine Manufacturing and Clean Diesel Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Modine Manufacturing $1.67 billion 0.48 $142.90 million $0.45 35.44
Clean Diesel Technologies $35.30 million 0.92 -$6.06 million ($3.36) -0.61

Modine Manufacturing has higher revenue and earnings than Clean Diesel Technologies. Clean Diesel Technologies 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 & Risk

Modine Manufacturing has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Clean Diesel Technologies has a beta of 2.82, suggesting that its stock price is 182% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Modine Manufacturing and Clean Diesel Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Modine Manufacturing 0 0 1 0 3.00
Clean Diesel Technologies 0 1 2 0 2.67

Clean Diesel Technologies has a consensus price target of $4.00, suggesting a potential upside of 94.17%. Given Clean Diesel Technologies’ higher possible upside, analysts clearly believe Clean Diesel Technologies is more favorable than Modine Manufacturing.

Institutional & Insider Ownership

83.4% of Modine Manufacturing shares are owned by institutional investors. Comparatively, 1.3% of Clean Diesel Technologies shares are owned by institutional investors. 4.4% of Modine Manufacturing shares are owned by company insiders. Comparatively, 5.3% of Clean Diesel Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Modine Manufacturing beats Clean Diesel Technologies on 8 of the 13 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-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.

Clean Diesel Technologies Company Profile

Clean Diesel Technologies, Inc. commercializes its material technology by manufacturing and distributing light duty vehicle catalysts, and heavy duty diesel emissions control systems and products to automakers, distributors, integrators and retrofitters. The Company operates through two business division segments: Catalyst, which develops and produces catalysts to reduce emissions from gasoline, diesel and natural gas combustion engines, and Heavy Duty Diesel Systems, which designs and manufactures verified exhaust emissions control solutions for a range of heavy duty diesel applications. It develops materials incorporating various base metals that replace platinum group metals (PGM) and rare earth metals in coatings on vehicle catalytic converters. Its technologies include Spinel, base-metal activated rhodium on Support, mixed phase catalyst, synergized PGM diesel oxidation catalyst (SPGM DOC), Platinum Plus, ARIS, and Exhaust Gas Recirculation and Selective Catalytic Reduction.

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