Contrasting Gates Industrial (NYSE:GTES) and Chart Industries (NYSE:GTLS)

Gates Industrial (NYSE:GTES) and Chart Industries (NYSE:GTLS) are both mid-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

98.5% of Gates Industrial shares are held by institutional investors. 2.7% of Gates Industrial shares are held by insiders. Comparatively, 1.0% of Chart Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Gates Industrial and Chart Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gates Industrial	$3.41 billion	1.72	$194.90 million	$0.91	24.97
Chart Industries	$4.16 billion	2.24	$218.50 million	$0.82	252.78

Chart Industries has higher revenue and earnings than Gates Industrial. Gates Industrial is trading at a lower price-to-earnings ratio than Chart Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Gates Industrial and Chart Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gates Industrial	0	6	6	0	2.50
Chart Industries	1	12	3	0	2.13

Gates Industrial presently has a consensus price target of $27.09, indicating a potential upside of 19.24%. Chart Industries has a consensus price target of $206.00, indicating a potential downside of 0.62%. Given Gates Industrial’s stronger consensus rating and higher possible upside, analysts clearly believe Gates Industrial is more favorable than Chart Industries.

Risk and Volatility

Gates Industrial has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Chart Industries has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Profitability

This table compares Gates Industrial and Chart Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gates Industrial	6.93%	10.38%	5.22%
Chart Industries	1.55%	14.17%	4.87%

Summary

Gates Industrial beats Chart Industries on 8 of the 14 factors compared between the two stocks.

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.

About Chart Industries

Chart Industries, Inc. engages in the designing, engineering, and manufacturing of process technologies and equipment for the gas and liquid molecules in the United States and internationally. The company operates in four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers natural gas processing solutions; process technology, liquefaction capabilities, and critical equipment for the LNG, include small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum heat exchangers, Core-in-Kettle heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the HVAC, power, and refining applications. Further, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. Chart Industries, Inc. was founded in 1859 and is headquartered in Ball Ground, Georgia.