Contrasting Modine Manufacturing (NYSE:MOD) & FGI Industries (NASDAQ:FGI)

FGI Industries (NASDAQ:FGI) and Modine Manufacturing (NYSE:MOD) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for FGI Industries and Modine Manufacturing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FGI Industries	1	1	1	0	2.00
Modine Manufacturing	0	2	7	0	2.78

FGI Industries currently has a consensus target price of $13.00, suggesting a potential upside of 76.39%. Modine Manufacturing has a consensus target price of $320.14, suggesting a potential upside of 80.39%. Given Modine Manufacturing’s stronger consensus rating and higher possible upside, analysts plainly believe Modine Manufacturing is more favorable than FGI Industries.

Insider and Institutional Ownership

95.2% of Modine Manufacturing shares are owned by institutional investors. 2.4% of FGI Industries shares are owned by company insiders. Comparatively, 1.9% of Modine Manufacturing shares are owned by company 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.

Profitability

This table compares FGI Industries and Modine Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FGI Industries	-3.07%	10.02%	2.28%
Modine Manufacturing	4.28%	25.59%	11.39%

Valuation and Earnings

This table compares FGI Industries and Modine Manufacturing”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FGI Industries	$130.53 million	0.11	-$6.14 million	($2.08)	-3.54
Modine Manufacturing	$3.18 billion	2.96	$121.50 million	$2.66	66.72

Modine Manufacturing has higher revenue and earnings than FGI Industries. FGI Industries is trading at a lower price-to-earnings ratio than Modine Manufacturing, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

FGI Industries has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Modine Manufacturing has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.

Summary

Modine Manufacturing beats FGI Industries on 12 of the 14 factors compared between the two stocks.

About FGI Industries

FGI Industries ltd. supplies kitchen and bath products in the United States, Canada, Europe, and internationally. The company sells sanitaryware products, such as toilets, sinks, pedestals, and toilet seats; wood and wood-substitute furniture for bathrooms, including vanities, mirrors, laundry, medicine cabinets, and other storage systems; shower systems; and customer kitchen cabinetry and other accessory items under the Foremost, avenue, contrac, Jetcoat, rosenberg, and Covered Bridge Cabinetry brand names. It sells its products through home center retailers, online retailers, distributors, and independent dealers. The company was incorporated in 2021 and is headquartered in East Hanover, New Jersey. FGI Industries Ltd. is a subsidiary of Foremost Groups Ltd.

About Modine Manufacturing

Modine Manufacturing Company provides thermal management products and solutions in the United States, Italy, Hungary, China, the United Kingdom, and internationally. It operates through Climate Solutions and Performance Technologies segments. The company offers heat transfer coils, including heat recovery and round tube plate fin coils; gas-fired, hydronic, electric and oilfired unit heaters; roof-mounted direct- and indirect-fired makeup air units; duct furnaces; infrared units; perimeter heating products; single packaged unit ventilators; modular chillers; air handler and condensing units; ceiling cassettes; evaporator unit coolers, remote condensers, fluid coolers, gas coolers, and dry and brine coolers; and motor and generator cooling coils, transformer oil coolers, radiators, dryers, and industrial heat exchangers. It also provides data center products consisting of IT cooling solutions, including precision air conditioning units for data center applications; computer room air conditioning and handler units; hybrid fan coils; fan walls; chillers; condensers; condensing units; and liquid cooling solutions for high-density computing, as well as replacement parts, maintenance service and control solutions for existing equipment and new building management controls and systems. In addition, the company offers powertrain cooling products, such as radiators, condensers, engine cooling modules, charge air coolers, fan shrouds, and surge tanks; cooling module generator sets; aluminum and stainless steel engine oil coolers, exhaust gas recirculation coolers, liquid charge air coolers, transmission and retarder oil coolers, and chillers; battery thermal management systems, electronics cooling packages, battery chillers, battery cooling plates, coolers and casings for electronics cooling, and coolers for electric axles; and coatings products and application services. Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.