Clean Diesel Technologies (NASDAQ: CDTI) and Modine Manufacturing (NYSE:MOD) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Clean Diesel Technologies and Modine Manufacturing’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Clean Diesel Technologies | $35.30 million | 0.92 | -$6.06 million | ($3.36) | -0.62 |
| Modine Manufacturing | $1.67 billion | 0.48 | $142.90 million | $0.45 | 35.44 |
Modine Manufacturing has higher revenue and earnings than Clean Diesel Technologies. Clean Diesel Technologies is trading at a lower price-to-earnings ratio than Modine Manufacturing, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
1.1% of Clean Diesel Technologies shares are held by institutional investors. Comparatively, 84.8% of Modine Manufacturing shares are held by institutional investors. 5.3% of Clean Diesel Technologies shares are held by company insiders. Comparatively, 4.4% of Modine Manufacturing shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Clean Diesel Technologies and Modine Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clean Diesel Technologies | -72.31% | -116.29% | -34.01% |
| Modine Manufacturing | 1.35% | 11.16% | 3.54% |
Analyst Recommendations
This is a summary of recent recommendations for Clean Diesel Technologies and Modine Manufacturing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clean Diesel Technologies | 0 | 1 | 2 | 0 | 2.67 |
| Modine Manufacturing | 0 | 0 | 1 | 0 | 3.00 |
Clean Diesel Technologies presently has a consensus target price of $4.00, suggesting a potential upside of 93.24%. Given Clean Diesel Technologies’ higher probable upside, equities analysts plainly believe Clean Diesel Technologies is more favorable than Modine Manufacturing.
Risk and Volatility
Clean Diesel Technologies has a beta of 2.82, indicating that its stock price is 182% more volatile than the S&P 500. Comparatively, Modine Manufacturing has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
Summary
Modine Manufacturing beats Clean Diesel Technologies on 8 of the 13 factors compared between the two stocks.
About Clean Diesel Technologies
Clean Diesel Technologies, Inc. commercializes its material technology by manufacturing and distributing light duty vehicle catalysts, and heavy duty diesel emissions control systems and products to automakers, distributors, integrators and retrofitters. The Company operates through two business division segments: Catalyst, which develops and produces catalysts to reduce emissions from gasoline, diesel and natural gas combustion engines, and Heavy Duty Diesel Systems, which designs and manufactures verified exhaust emissions control solutions for a range of heavy duty diesel applications. It develops materials incorporating various base metals that replace platinum group metals (PGM) and rare earth metals in coatings on vehicle catalytic converters. Its technologies include Spinel, base-metal activated rhodium on Support, mixed phase catalyst, synergized PGM diesel oxidation catalyst (SPGM DOC), Platinum Plus, ARIS, and Exhaust Gas Recirculation and Selective Catalytic Reduction.
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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