Reviewing Advanced Drainage Systems (NYSE:WMS) and Modine Manufacturing (NYSE:MOD)

Modine Manufacturing (NYSE:MOD) and Advanced Drainage Systems (NYSE:WMS) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Profitability

This table compares Modine Manufacturing and Advanced Drainage Systems’ 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%
Advanced Drainage Systems	14.00%	28.28%	12.30%

Insider and Institutional Ownership

95.2% of Modine Manufacturing shares are owned by institutional investors. Comparatively, 89.8% of Advanced Drainage Systems shares are owned by institutional investors. 1.9% of Modine Manufacturing shares are owned by company insiders. Comparatively, 1.7% of Advanced Drainage Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Modine Manufacturing and Advanced Drainage Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modine Manufacturing	$3.18 billion	3.29	$121.50 million	$2.66	74.11
Advanced Drainage Systems	$3.05 billion	3.19	$426.46 million	$5.79	22.26

Advanced Drainage Systems has lower revenue, but higher earnings than Modine Manufacturing. Advanced Drainage 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.

Risk and Volatility

Modine Manufacturing has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Advanced Drainage Systems has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Modine Manufacturing and Advanced Drainage Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modine Manufacturing	0	2	7	0	2.78
Advanced Drainage Systems	0	2	7	1	2.90

Modine Manufacturing presently has a consensus price target of $320.14, suggesting a potential upside of 62.40%. Advanced Drainage Systems has a consensus price target of $188.70, suggesting a potential upside of 46.40%. Given Modine Manufacturing’s higher probable upside, equities analysts plainly believe Modine Manufacturing is more favorable than Advanced Drainage Systems.

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 Advanced Drainage Systems

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.