Reviewing AEye (NASDAQ:LIDR) & Modine Manufacturing (NYSE:MOD)

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

Profitability

This table compares Modine Manufacturing and AEye’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modine Manufacturing	6.71%	25.33%	10.69%
AEye	-8,382.08%	-117.42%	-72.16%

Volatility and Risk

Modine Manufacturing has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500. Comparatively, AEye has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Valuation and Earnings

This table compares Modine Manufacturing and AEye’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modine Manufacturing	$2.41 billion	2.10	$153.10 million	$3.03	31.92
AEye	$1.46 million	12.42	-$87.13 million	($11.46)	-0.24

Modine Manufacturing has higher revenue and earnings than AEye. AEye 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

95.2% of Modine Manufacturing shares are held by institutional investors. Comparatively, 21.6% of AEye shares are held by institutional investors. 2.9% of Modine Manufacturing shares are held by insiders. Comparatively, 11.9% of AEye shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Modine Manufacturing and AEye, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modine Manufacturing	0	0	4	0	3.00
AEye	0	0	0	0	N/A

Modine Manufacturing presently has a consensus target price of $99.33, suggesting a potential upside of 2.71%. Given Modine Manufacturing’s higher possible upside, equities analysts clearly believe Modine Manufacturing is more favorable than AEye.

Summary

Modine Manufacturing beats AEye on 11 of the 13 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. It operates through Climate Solutions and Performance Technologies segments. The company offers gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; perimeter heating products, such as commercial fin-tube radiation, cabinet unit heaters, and convectors; roof-mounted direct- and indirect-fired makeup air units; unit ventilators; single packaged vertical units; precision air conditioning units for data center applications; air handler units; fan walls; chillers; ceiling cassettes; hybrid fan coils; and condensers and condensing units. It also provides heat recovery, round tube plate fin, and motor and generator cooling coils; evaporator unit, fluid, transformer oil, gas, and dry and brine coolers, as well as remote condensers; and coatings to protect against corrosion. In addition, the company offers powertrain cooling products, including engine cooling modules, radiators, charge air coolers, condensers, oil coolers, fan shrouds, and surge tanks; on-engine cooling products comprising exhaust gas recirculation, engine oil, fuel, and charge air coolers; liquid-cooled products, such as engine oil, EGR, liquid charge air, transmission and retarder oil, fuel coolers, and condensers; and complete battery thermal management systems and electronics cooling packages. It serves heating, ventilation, and cooling OEMs; construction architects and contractors; wholesalers of heating equipment; automobile, truck, bus, and specialty vehicle OEMs; agricultural, industrial, and construction equipment OEMs; and commercial and industrial equipment OEMs. The company has operations in North America, South America, Europe, and Asia. Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.

About AEye

AEye, Inc., together with its subsidiaries, provides lidar systems for vehicle autonomy, advanced driver-assistance systems, and robotic vision applications in the United States, Europe, and Asia-Pacific. It offers 4Sight intelligent sensing lidar platform, including 4Sight at Design, Triggered 4Sight, Responsive 4Sight, and Predictive 4Sight; and 4Sight for automotive and industrial market. The company was formerly known as CF Finance Acquisition Corp. III and changed its name to AEye, Inc. in August 2021. AEye, Inc. was founded in 2013 and is headquartered in Dublin, California.