Gates Industrial (NYSE:GTES – Get Free Report) and Paul Mueller (OTCMKTS:MUEL – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Gates Industrial and Paul Mueller’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gates Industrial | 5.98% | 10.17% | 5.02% |
| Paul Mueller | 13.25% | 44.93% | 22.22% |
Institutional & Insider Ownership
98.5% of Gates Industrial shares are held by institutional investors. 2.7% of Gates Industrial shares are held by company insiders. Comparatively, 4.0% of Paul Mueller shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gates Industrial | 0 | 3 | 6 | 0 | 2.67 |
| Paul Mueller | 0 | 0 | 0 | 0 | 0.00 |
Gates Industrial presently has a consensus target price of $26.6667, suggesting a potential upside of 8.95%. Given Gates Industrial’s stronger consensus rating and higher probable upside, research analysts clearly believe Gates Industrial is more favorable than Paul Mueller.
Earnings & Valuation
This table compares Gates Industrial and Paul Mueller”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gates Industrial | $3.41 billion | 1.85 | $194.90 million | $0.78 | 31.38 |
| Paul Mueller | $248.59 million | 1.53 | $29.67 million | $42.72 | 9.60 |
Gates Industrial has higher revenue and earnings than Paul Mueller. Paul Mueller 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
Gates Industrial has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Paul Mueller has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
Summary
Gates Industrial beats Paul Mueller on 9 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 Paul Mueller
Paul Mueller Company, together with its subsidiaries, provides manufactured equipment and components in the United States, North America, Asia, the Far East, the Netherlands, EU countries, Europe, and internationally. The company operates through four reportable segments: Dairy Farm Equipment, Industrial Equipment, Field Fabrication, and Transportation. The Dairy Farm Equipment segment offers milk cooling and storage equipment and accessories, refrigeration units, and heat recovery equipment for use on dairy farms to independent dealers for resale, and directly to farmers; and services for farmers, as well as milk coolers for rent to farmers. The Industrial Equipment segment sells food, beverage, chemical, and industrial processing equipment; and biopharmaceutical and pure water equipment, as well as stainless steel, alloy processing, storage tanks, and heat transfer products. The Field Fabrication segment sells large, field-fabricated tanks and vessels, such as stainless steel storage tanks for sanitary and industrial process applications. The Transportation segment offers delivery of products to customers; backhauls of materials and components; and contract carriage for third parties. It serves its products in various industries, including animal health, beverage, brewing, chemical, dairy farm, dairy processing, food, heat transfer, HVAC, industrial construction, oil and gas, personal care, pharmaceutical, pure water, tank fabrication, and wine. The company was founded in 1940 and is headquartered in Springfield, Missouri.
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