Hennessy Capital Acquisition Corp. IV (NASDAQ:HCAC) and Modine Manufacturing (NYSE:MOD) are both small-cap unclassified companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Valuation & Earnings
This table compares Hennessy Capital Acquisition Corp. IV and Modine Manufacturing's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Hennessy Capital Acquisition Corp. IV | N/A | N/A | $1.16 million | N/A | N/A |
Modine Manufacturing | $1.98 billion | 0.38 | $-2,200,000.00 | $1.05 | 13.74 |
Hennessy Capital Acquisition Corp. IV has higher earnings, but lower revenue than Modine Manufacturing.
Profitability
This table compares Hennessy Capital Acquisition Corp. IV and Modine Manufacturing's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Hennessy Capital Acquisition Corp. IV | N/A | -29.50% | -0.48% |
Modine Manufacturing | -0.31% | 9.48% | 3.19% |
Risk and Volatility
Hennessy Capital Acquisition Corp. IV has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Modine Manufacturing has a beta of 2.82, indicating that its share price is 182% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Hennessy Capital Acquisition Corp. IV and Modine Manufacturing, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Hennessy Capital Acquisition Corp. IV | 0 | 0 | 1 | 0 | 3.00 |
Modine Manufacturing | 0 | 1 | 2 | 0 | 2.67 |
Hennessy Capital Acquisition Corp. IV presently has a consensus price target of $30.00, indicating a potential upside of 133.28%. Modine Manufacturing has a consensus price target of $11.50, indicating a potential downside of 18.56%. Given Hennessy Capital Acquisition Corp. IV's stronger consensus rating and higher possible upside, research analysts clearly believe Hennessy Capital Acquisition Corp. IV is more favorable than Modine Manufacturing.
Institutional and Insider Ownership
66.8% of Hennessy Capital Acquisition Corp. IV shares are owned by institutional investors. Comparatively, 83.3% of Modine Manufacturing shares are owned by institutional investors. 26.3% of Hennessy Capital Acquisition Corp. IV shares are owned by company insiders. Comparatively, 5.4% 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 is poised for long-term growth.
Summary
Modine Manufacturing beats Hennessy Capital Acquisition Corp. IV on 6 of the 11 factors compared between the two stocks.