Critical Comparison: Dorman Products (DORM) vs. Modine Manufacturing (MOD)
Dorman Products (NASDAQ: DORM) and Modine Manufacturing (NYSE:MOD) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
This is a breakdown of recent recommendations for Dorman Products and Modine Manufacturing, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dorman Products currently has a consensus target price of $78.00, indicating a potential upside of 3.32%. Given Dorman Products’ higher probable upside, equities research analysts clearly believe Dorman Products is more favorable than Modine Manufacturing.
This table compares Dorman Products and Modine Manufacturing’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Dorman Products has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Modine Manufacturing has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
Insider & Institutional Ownership
75.9% of Dorman Products shares are owned by institutional investors. Comparatively, 84.8% of Modine Manufacturing shares are owned by institutional investors. 11.7% of Dorman Products shares are owned by company insiders. Comparatively, 4.4% of Modine Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Dorman Products 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|
|Dorman Products||$892.77 million||2.87||$197.74 million||$3.28||23.02|
|Modine Manufacturing||$1.67 billion||0.48||$142.90 million||$0.45||35.56|
Dorman Products has higher revenue, but lower earnings than Modine Manufacturing. Dorman Products is trading at a lower price-to-earnings ratio than Modine Manufacturing, indicating that it is currently the more affordable of the two stocks.
Dorman Products beats Modine Manufacturing on 9 of the 14 factors compared between the two stocks.
Dorman Products Company Profile
Dorman Products, Inc. is a supplier of replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks in the automotive aftermarket. As of December 31, 2016, the Company distributed and marketed approximately 155,000 different stock keeping units (SKU’s) of automotive replacement parts and fasteners. As of December 31, 2016, approximately 83% of its products were sold under brands that it owned and the remainder of its products were sold for resale under customers’ private labels, other brands or in bulk. Its products are sold in the United States through automotive aftermarket retailers, national, regional and local warehouse distributors, and specialty markets, and salvage yards. It also distributes automotive replacement parts outside the United States, with sales primarily into Canada, Mexico, Europe, the Middle East, and Australia. Its parts are marketed under the OE Solutions, TECHoice, AutoGrade, Conduct-Tite, FirstStop and HD Solutions brand names.
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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