Gates Industrial (NYSE:GTES) & Omnitek Engineering (OTCMKTS:OMTK) Head-To-Head Comparison

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

Risk and Volatility

Omnitek Engineering has a beta of -0.22, meaning that its share price is 122% less volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnitek Engineering	18.80%	-22.26%	28.98%
Gates Industrial	6.93%	10.38%	5.22%

Valuation and Earnings

This table compares Omnitek Engineering and Gates Industrial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnitek Engineering	$1.02 million	0.31	-$170,000.00	$0.02	0.73
Gates Industrial	$3.41 billion	1.62	$194.90 million	$0.91	23.56

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Omnitek Engineering and Gates Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnitek Engineering	0	0	0	0	0.00
Gates Industrial	0	6	6	0	2.50

Gates Industrial has a consensus price target of $27.18, suggesting a potential upside of 26.78%. Given Gates Industrial’s stronger consensus rating and higher possible upside, analysts clearly believe Gates Industrial is more favorable than Omnitek Engineering.

Insider & Institutional Ownership

98.5% of Gates Industrial shares are held by institutional investors. 45.5% of Omnitek Engineering shares are held by insiders. Comparatively, 2.7% of Gates Industrial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Gates Industrial beats Omnitek Engineering on 11 of the 14 factors compared between the two stocks.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

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.