Modine Manufacturing (NYSE:MOD) and Autoliv (NYSE:ALV) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares Modine Manufacturing and Autoliv’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%
Autoliv 3.09% 17.38% 7.80%

Earnings & Valuation

This table compares Modine Manufacturing and Autoliv’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Modine Manufacturing $2.10 billion 0.37 $22.20 million $1.54 9.90
Autoliv $10.38 billion 0.73 $427.10 million $6.58 13.28

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

Analyst Ratings

This is a summary of recent ratings for Modine Manufacturing and Autoliv, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Modine Manufacturing 0 0 0 0 N/A
Autoliv 2 11 10 0 2.35

Autoliv has a consensus price target of $125.83, indicating a potential upside of 43.97%. Given Autoliv’s higher probable upside, analysts clearly believe Autoliv is more favorable than Modine Manufacturing.

Volatility & Risk

Modine Manufacturing has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Dividends

Autoliv pays an annual dividend of $2.48 per share and has a dividend yield of 2.8%. Modine Manufacturing does not pay a dividend. Autoliv pays out 37.7% of its earnings in the form of a dividend. Autoliv has increased its dividend for 8 consecutive years.

Insider and Institutional Ownership

92.0% of Modine Manufacturing shares are held by institutional investors. Comparatively, 40.4% of Autoliv shares are held by institutional investors. 4.5% of Modine Manufacturing shares are held by company insiders. Comparatively, 0.3% of Autoliv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Autoliv beats Modine Manufacturing on 12 of the 16 factors compared between the two stocks.

About Modine Manufacturing

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.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry worldwide. The company operates through two segments, Passive Safety and Electronics. It offers modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, battery cable cutters, pedestrian protection systems, and child seats. The company also provides restraint control electronics and crash sensors for deployment of airbags and seatbelt pretensioners; active safety sensors and software for advanced driver assistance systems and autonomous driving solutions; and brake control systems. It primarily serves car manufacturers. The company was founded in 1953 and is headquartered in Stockholm, Sweden.

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