Modine Manufacturing (NYSE:MOD) vs. FGI Industries (NASDAQ:FGI) Critical Analysis

Modine Manufacturing (NYSE:MOD) and FGI Industries (NASDAQ:FGI) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Earnings and Valuation

This table compares Modine Manufacturing and FGI Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modine Manufacturing	$3.37 billion	2.82	$121.50 million	$2.66	67.40
FGI Industries	$128.70 million	0.10	-$6.14 million	($2.08)	-3.24

Modine Manufacturing has higher revenue and earnings than FGI Industries. FGI Industries 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 Modine Manufacturing and FGI Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modine Manufacturing	4.28%	25.59%	11.39%
FGI Industries	-3.07%	10.02%	2.28%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Modine Manufacturing and FGI Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modine Manufacturing	0	2	7	0	2.78
FGI Industries	1	1	1	0	2.00

Modine Manufacturing currently has a consensus target price of $320.14, suggesting a potential upside of 78.56%. FGI Industries has a consensus target price of $13.00, suggesting a potential upside of 92.88%. Given FGI Industries’ higher probable upside, analysts clearly believe FGI Industries is more favorable than Modine Manufacturing.

Insider and Institutional Ownership

95.2% of Modine Manufacturing shares are owned by institutional investors. 1.9% of Modine Manufacturing shares are owned by insiders. Comparatively, 2.4% of FGI Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Modine Manufacturing has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, FGI Industries has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500.

Summary

Modine Manufacturing beats FGI Industries on 11 of the 14 factors compared between the two stocks.

About Modine Manufacturing

Modine Manufacturing Company provides thermal management products and solutions in the United States, Italy, Hungary, China, the United Kingdom, and internationally. It operates through Climate Solutions and Performance Technologies segments. The company offers heat transfer coils, including heat recovery and round tube plate fin coils; gas-fired, hydronic, electric and oilfired unit heaters; roof-mounted direct- and indirect-fired makeup air units; duct furnaces; infrared units; perimeter heating products; single packaged unit ventilators; modular chillers; air handler and condensing units; ceiling cassettes; evaporator unit coolers, remote condensers, fluid coolers, gas coolers, and dry and brine coolers; and motor and generator cooling coils, transformer oil coolers, radiators, dryers, and industrial heat exchangers. It also provides data center products consisting of IT cooling solutions, including precision air conditioning units for data center applications; computer room air conditioning and handler units; hybrid fan coils; fan walls; chillers; condensers; condensing units; and liquid cooling solutions for high-density computing, as well as replacement parts, maintenance service and control solutions for existing equipment and new building management controls and systems. In addition, the company offers powertrain cooling products, such as radiators, condensers, engine cooling modules, charge air coolers, fan shrouds, and surge tanks; cooling module generator sets; aluminum and stainless steel engine oil coolers, exhaust gas recirculation coolers, liquid charge air coolers, transmission and retarder oil coolers, and chillers; battery thermal management systems, electronics cooling packages, battery chillers, battery cooling plates, coolers and casings for electronics cooling, and coolers for electric axles; and coatings products and application services. Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.

About FGI Industries

FGI Industries ltd. supplies kitchen and bath products in the United States, Canada, Europe, and internationally. The company sells sanitaryware products, such as toilets, sinks, pedestals, and toilet seats; wood and wood-substitute furniture for bathrooms, including vanities, mirrors, laundry, medicine cabinets, and other storage systems; shower systems; and customer kitchen cabinetry and other accessory items under the Foremost, avenue, contrac, Jetcoat, rosenberg, and Covered Bridge Cabinetry brand names. It sells its products through home center retailers, online retailers, distributors, and independent dealers. The company was incorporated in 2021 and is headquartered in East Hanover, New Jersey. FGI Industries Ltd. is a subsidiary of Foremost Groups Ltd.