Westport Fuel Systems (NASDAQ: WPRT) and Modine Manufacturing (NYSE:MOD) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Volatility & Risk
Westport Fuel Systems has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, Modine Manufacturing has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Westport Fuel Systems and Modine Manufacturing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Westport Fuel Systems | 0 | 1 | 3 | 0 | 2.75 |
| Modine Manufacturing | 0 | 0 | 1 | 0 | 3.00 |
Westport Fuel Systems currently has a consensus target price of $2.78, indicating a potential upside of 21.22%. Given Westport Fuel Systems’ higher probable upside, equities analysts plainly believe Westport Fuel Systems is more favorable than Modine Manufacturing.
Valuation and Earnings
This table compares Westport Fuel Systems and Modine Manufacturing’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Westport Fuel Systems | $285.75 million | 0.88 | -$51.95 million | ($0.58) | -3.95 |
| Modine Manufacturing | $1.67 billion | 0.47 | $142.90 million | $0.45 | 34.56 |
Modine Manufacturing has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Modine Manufacturing, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Westport Fuel Systems and Modine Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Westport Fuel Systems | -20.37% | -65.98% | -19.03% |
| Modine Manufacturing | 1.35% | 11.16% | 3.54% |
Insider and Institutional Ownership
9.4% of Westport Fuel Systems shares are held by institutional investors. Comparatively, 84.8% of Modine Manufacturing shares are held by institutional investors. 4.4% of Modine Manufacturing shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Modine Manufacturing beats Westport Fuel Systems on 9 of the 13 factors compared between the two stocks.
Westport Fuel Systems Company Profile
Westport Fuel Systems Inc, formerly Westport Innovations Inc, is a Canada-based provider of low-emission engine and fuel system technologies utilizing gaseous fuels. It operates through the Westport Operations segment. The Westport Operations segment designs, manufactures and sells compressed natural gas, liquefied natural gas, and liquefied petroleum gas components and systems to original equipment manufacturers and to aftermarket customers. Its subsidiaries design and manufacture a range of components, including pressure regulators, injectors, electronic control units, valves and filters; sell mono-fuel, bi-fuel and dual-fuel diesel blend conversion kits, and also offer full engine management systems and solutions. The Westport Operations segment has a customer base in Europe and North America, as well as in Asia, South America, and Africa.
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.
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