Analyzing Gates Industrial (GTES) & Its Competitors

Gates Industrial (NYSE:GTES) is one of 69 publicly-traded companies in the “MACH – GENL INDL” industry, but how does it weigh in compared to its rivals? We will compare Gates Industrial to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Gates Industrial and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gates Industrial	0	3	6	0	2.67
Gates Industrial Competitors	337	2439	3090	122	2.50

Gates Industrial currently has a consensus price target of $23.22, suggesting a potential upside of 5.67%. As a group, “MACH – GENL INDL” companies have a potential upside of 17.75%. Given Gates Industrial’s rivals higher probable upside, analysts plainly believe Gates Industrial has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

98.5% of Gates Industrial shares are held by institutional investors. Comparatively, 73.4% of shares of all “MACH – GENL INDL” companies are held by institutional investors. 2.7% of Gates Industrial shares are held by company insiders. Comparatively, 6.1% of shares of all “MACH – GENL INDL” companies are held by company 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.

Profitability

This table compares Gates Industrial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gates Industrial	6.39%	10.15%	5.00%
Gates Industrial Competitors	8.57%	12.70%	7.08%

Risk & Volatility

Gates Industrial has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Gates Industrial’s rivals have a beta of 12.18, indicating that their average stock price is 1,118% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gates Industrial and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gates Industrial	$3.41 billion	$194.90 million	26.80
Gates Industrial Competitors	$4.73 billion	$501.64 million	18.76

Gates Industrial’s rivals have higher revenue and earnings than Gates Industrial. Gates Industrial is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Gates Industrial rivals beat Gates Industrial on 9 of the 13 factors compared.

About Gates Industrial

Gates Industrial Corporation PLC designs and manufactures power transmission equipment. Its products serves harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation.