WallStSmart

Allison Transmission Holdings Inc (ALSN)vsModine Manufacturing Company (MOD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Allison Transmission Holdings Inc generates 5% more annual revenue ($3.01B vs $2.87B). ALSN leads profitability with a 20.7% profit margin vs 3.4%. ALSN appears more attractively valued with a PEG of 0.67. ALSN earns a higher WallStSmart Score of 81/100 (A-).

ALSN

Exceptional Buy

81

out of 100

Grade: A-

Growth: 7.3Profit: 9.0Value: 10.0Quality: 8.0
Piotroski: 5/9Altman Z: 1.56

MOD

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.7Quality: 7.8
Piotroski: 6/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALSNUndervalued (+66.0%)

Margin of Safety

+66.0%

Fair Value

$343.04

Current Price

$118.97

$224.07 discount

UndervaluedFair: $343.04Overvalued
MODSignificantly Overvalued (-1654.6%)

Margin of Safety

-1654.6%

Fair Value

$12.51

Current Price

$232.89

$220.38 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALSN6 strengths · Avg: 8.8/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

EPS GrowthGrowth
117.0%10/10

Earnings expanding 117.0% YoY

Profit MarginProfitability
20.7%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.678/10

Growing faster than its price suggests

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.3%8/10

Strong operational efficiency at 27.3%

MOD3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
30.5%10/10

Revenue surging 30.5% year-over-year

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Areas to Watch

ALSN3 concerns · Avg: 3.7/10
Price/BookValuation
19.1x4/10

Trading at 19.1x book value

Altman Z-ScoreHealth
1.564/10

Distress zone — elevated risk

Debt/EquityHealth
1.303/10

Elevated debt levels

MOD4 concerns · Avg: 2.8/10
Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

P/E RatioValuation
126.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.5%2/10

Earnings declined 3.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : ALSN

The strongest argument for ALSN centers on Return on Equity, EPS Growth, Profit Margin. Profitability is solid with margins at 20.7% and operating margin at 27.3%. Revenue growth of 20.4% demonstrates continued momentum.

Bull Case : MOD

The strongest argument for MOD centers on Revenue Growth, Altman Z-Score, PEG Ratio. Revenue growth of 30.5% demonstrates continued momentum. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bear Case : ALSN

The primary concerns for ALSN are Price/Book, Altman Z-Score, Debt/Equity.

Bear Case : MOD

The primary concerns for MOD are Price/Book, Profit Margin, P/E Ratio. A P/E of 126.6x leaves little room for execution misses. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

ALSN profiles as a growth stock while MOD is a hypergrowth play — different risk/reward profiles.

MOD carries more volatility with a beta of 1.68 — expect wider price swings.

MOD is growing revenue faster at 30.5% — sustainability is the question.

ALSN generates stronger free cash flow (163M), providing more financial flexibility.

Bottom Line

ALSN scores higher overall (81/100 vs 53/100), backed by strong 20.7% margins and 20.4% revenue growth. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Allison Transmission Holdings Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.

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Modine Manufacturing Company

CONSUMER CYCLICAL · AUTO PARTS · USA

Modine Manufacturing Company provides heat transfer systems and heat transfer components designed for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications. The company is headquartered in Racine, Wisconsin.

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