Modine Manufacturing (NASDAQ: GNTX) and Gentex (NASDAQ:GNTX) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional and Insider Ownership

85.7% of Modine Manufacturing shares are held by institutional investors. Comparatively, 85.2% of Gentex shares are held by institutional investors. 4.5% of Modine Manufacturing shares are held by insiders. Comparatively, 0.6% of Gentex shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Modine Manufacturing 1.26% 17.01% 5.36%
Gentex 24.25% 20.27% 17.61%

Valuation and Earnings

This table compares Modine Manufacturing and Gentex’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 $2.10 billion 0.42 $22.20 million $1.54 11.23
Gentex $1.79 billion 3.62 $406.79 million $1.28 18.89

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

Dividends

Gentex pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Modine Manufacturing does not pay a dividend. Gentex pays out 34.4% of its earnings in the form of a dividend. Gentex has increased its dividend for 7 consecutive years.

Volatility and Risk

Modine Manufacturing has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Gentex has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Modine Manufacturing and Gentex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Modine Manufacturing 0 0 0 0 N/A
Gentex 0 4 5 0 2.56

Gentex has a consensus price target of $25.67, suggesting a potential upside of 6.15%. Given Gentex’s higher possible upside, analysts clearly believe Gentex is more favorable than Modine Manufacturing.

Summary

Gentex beats Modine Manufacturing on 10 of the 16 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.

Gentex Company Profile

Gentex Corporation provides automatic-dimming and non-dimming rearview mirrors, and electronics for the automotive industry; dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. It designs, develops, manufactures, and markets automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and interior and exterior non-automatic-dimming rearview mirrors with electronic features for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers. The company also provides photoelectric smoke detectors and alarms, audible and visual signaling alarms, electrochemical carbon monoxide detectors and alarms, and bells and speakers for use in fire detection systems in office buildings, hotels, and other commercial and residential establishments. Gentex Corporation sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was founded in 1974 and is headquartered in Zeeland, Michigan.

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