Financial Review: Gates Industrial (NYSE:GTES) vs. THT Heat Transfer Technology (OTCMKTS:THTI)

THT Heat Transfer Technology (OTCMKTS:THTI) and Gates Industrial (NYSE:GTES) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for THT Heat Transfer Technology and Gates Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THT Heat Transfer Technology	0	0	0	0	0.00
Gates Industrial	0	5	6	0	2.55

Gates Industrial has a consensus target price of $30.36, suggesting a potential upside of 37.99%. Given Gates Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Gates Industrial is more favorable than THT Heat Transfer Technology.

Earnings and Valuation

This table compares THT Heat Transfer Technology and Gates Industrial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
THT Heat Transfer Technology	N/A	N/A	N/A	N/A	N/A
Gates Industrial	$3.44 billion	1.62	$251.40 million	$0.97	22.69

Gates Industrial has higher revenue and earnings than THT Heat Transfer Technology.

Institutional & Insider Ownership

98.5% of Gates Industrial shares are held by institutional investors. 22.4% of THT Heat Transfer Technology shares are held by insiders. Comparatively, 2.7% of Gates Industrial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares THT Heat Transfer Technology and Gates Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
THT Heat Transfer Technology	N/A	N/A	N/A
Gates Industrial	7.30%	10.36%	5.27%

Summary

Gates Industrial beats THT Heat Transfer Technology on 8 of the 9 factors compared between the two stocks.

About THT Heat Transfer Technology

THT Heat Transfer Technology, Inc. engages in the manufacture and trading of plate heat exchangers and related products. It offers plate heat exchangers, heat exchanger units, air-cooled heat exchangers, and shell-and-tube heat exchangers. The company was founded on August 7, 2006 and is headquartered in Siping, China.

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.