Fuel Systems Solutions (NASDAQ: FSYS) and Modine Manufacturing (NYSE:MOD) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Fuel Systems Solutions and Modine Manufacturing, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fuel Systems Solutions 0 0 0 0 N/A
Modine Manufacturing 0 0 1 0 3.00

Earnings and Valuation

This table compares Fuel Systems Solutions and Modine Manufacturing’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fuel Systems Solutions N/A N/A N/A ($2.30) -2.35
Modine Manufacturing $1.50 billion 0.71 $14.20 million $0.85 24.94

Modine Manufacturing has higher revenue and earnings than Fuel Systems Solutions. Fuel Systems Solutions 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

Fuel Systems Solutions has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Modine Manufacturing has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Institutional and Insider Ownership

82.4% of Modine Manufacturing shares are owned by institutional investors. 4.4% of Modine Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Fuel Systems Solutions and Modine Manufacturing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fuel Systems Solutions -11.53% -16.93% -11.31%
Modine Manufacturing 2.29% 14.94% 4.49%

Summary

Modine Manufacturing beats Fuel Systems Solutions on 8 of the 9 factors compared between the two stocks.

About Fuel Systems Solutions

Fuel Systems Solutions, Inc. is engaged in providing alternative fuel systems for transportation, industrial and refueling applications across the world, as well as reduction technologies for the heavy duty truck and rail markets. The Company operates through two segments: FSS Industrial and FSS Automotive. The FSS Industrial segment consists of its industrial mobile and stationary, auxiliary power units (APU) and the heavy duty commercial transportation operations. The FSS Automotive segment consists of the Company’s passenger and light duty commercial transportation, automotive aftermarket and transportation infrastructure operations. Its products include gaseous fuel regulators, fuel shut-off valves, fuel metering and delivery systems, complete engine systems, auxiliary power systems and electronic controls for use in internal combustion engines. In addition to these core products, which it manufactures, the Company also designs, assembles and markets ancillary components.

About Modine Manufacturing

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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