Gates Industrial (NYSE:GTES) & CVD Equipment (NASDAQ:CVV) Head-To-Head Review

CVD Equipment (NASDAQ:CVV) and Gates Industrial (NYSE:GTES) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares CVD Equipment and Gates Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVD Equipment	-0.66%	-0.72%	-0.60%
Gates Industrial	6.93%	10.38%	5.22%

Insider and Institutional Ownership

31.6% of CVD Equipment shares are held by institutional investors. Comparatively, 98.5% of Gates Industrial shares are held by institutional investors. 28.7% of CVD Equipment shares are held by company insiders. Comparatively, 2.7% of Gates Industrial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for CVD Equipment and Gates Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVD Equipment	1	0	0	0	1.00
Gates Industrial	0	6	6	0	2.50

Gates Industrial has a consensus target price of $27.09, suggesting a potential upside of 17.74%. Given Gates Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Gates Industrial is more favorable than CVD Equipment.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVD Equipment	$26.88 million	1.24	-$1.90 million	($0.02)	-240.50
Gates Industrial	$3.41 billion	1.74	$194.90 million	$0.91	25.29

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

Volatility and Risk

CVD Equipment has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Summary

Gates Industrial beats CVD Equipment on 13 of the 14 factors compared between the two stocks.

About CVD Equipment

CVD Equipment Corporation, together with its subsidiaries, designs, develops, manufactures, and sells equipment to develop and manufacture materials and coatings in the United States and internationally. It operates through three segments: CVD Equipment, Stainless Design Concepts, and CVD Materials. The CVD Equipment segment offers chemical vapor deposition, physical vapor transport, and thermal process equipment under the FirstNano brand for various markets, such as high power electronics, aerospace advanced materials for gas turbine jet engines, and nanomaterials used in batteries, as well as semiconductors, LEDs, carbon nanotubes, nanowires, solar cells, and other industrial and research applications. The Stainless Design Concepts segment provides ultra-high purity gas and chemical delivery control systems, including gas cylinder storage cabinets, custom gas and chemical delivery systems, gas and liquid valve manifold boxes, and gas isolation boxes for semiconductor fabrication processes, aerospace, solar cells, LEDs, carbon nanotubes, nanowires, and industrial applications. The CVD Materials segment offers products related to advanced materials and coatings, such as MesoPlasma printing services and products comprising heaters, antennas, and sensors to aerospace, satellite, power generation, defense, and other markets. The company also provides annealing, diffusion, and low pressure chemical vapor deposition furnaces; and standard and custom fabricated quartz-ware used in its equipment and other customer tools. The company was incorporated in 1982 and is headquartered in Central Islip, New York.

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.