Financial Contrast: Gates Industrial (GTES) & The Competition

Gates Industrial (NYSE:GTES) is one of 69 publicly-traded companies in the “MACH – GENL INDL” industry, but how does it contrast to its rivals? We will compare Gates Industrial to related businesses based on the strength of its valuation, profitability, risk, institutional ownership, earnings, analyst recommendations and dividends.

Risk and Volatility

Gates Industrial has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Gates Industrial’s rivals have a beta of 11.39, indicating that their average share price is 1,039% more volatile than the S&P 500.

Profitability

This table compares Gates Industrial and its rivals’ 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%

Analyst Ratings

This is a summary of current recommendations and price targets for Gates Industrial and its rivals, 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	339	2456	3113	125	2.50

Gates Industrial presently has a consensus target price of $24.44, indicating a potential downside of 0.70%. As a group, “MACH – GENL INDL” companies have a potential upside of 11.14%. Given Gates Industrial’s rivals higher probable upside, analysts clearly believe Gates Industrial has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Gates Industrial and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gates Industrial	$3.41 billion	$194.90 million	30.02
Gates Industrial Competitors	$4.72 billion	$501.64 million	20.20

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

Institutional & Insider 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 company insiders. Comparatively, 6.2% of shares of all “MACH – GENL INDL” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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

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.