Contrasting Gates Industrial (GTES) & Its Rivals

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gates Industrial and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gates Industrial	0	3	6	0	2.67
Gates Industrial Competitors	337	2440	3093	123	2.50

Gates Industrial presently has a consensus price target of $23.22, indicating a potential upside of 2.53%. As a group, “MACH – GENL INDL” companies have a potential upside of 15.33%. Given Gates Industrial’s peers higher probable upside, analysts plainly believe Gates Industrial has less favorable growth aspects than its peers.

Insider & Institutional 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 insiders. Comparatively, 6.1% of shares of all “MACH – GENL INDL” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Gates Industrial and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gates Industrial	$3.41 billion	$194.90 million	27.62
Gates Industrial Competitors	$4.73 billion	$501.64 million	18.85

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

Profitability

This table compares Gates Industrial and its peers’ 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 and Volatility

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

Summary

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

Gates Industrial Company Profile

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.