GEA Group (OTCMKTS:GEAGF – Get Free Report) and Gates Industrial (NYSE:GTES – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Profitability
This table compares GEA Group and Gates Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GEA Group | 7.49% | 18.50% | 7.55% |
| Gates Industrial | 7.23% | 10.00% | 5.15% |
Valuation & Earnings
This table compares GEA Group and Gates Industrial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GEA Group | $6.22 billion | 1.66 | $468.31 million | $2.32 | 27.30 |
| Gates Industrial | $3.45 billion | 1.99 | $251.40 million | $0.96 | 28.19 |
GEA Group has higher revenue and earnings than Gates Industrial. GEA Group 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 recent ratings and price targets for GEA Group and Gates Industrial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GEA Group | 0 | 0 | 0 | 1 | 4.00 |
| Gates Industrial | 0 | 4 | 7 | 0 | 2.64 |
Gates Industrial has a consensus target price of $31.00, indicating a potential upside of 14.54%. Given Gates Industrial’s higher possible upside, analysts plainly believe Gates Industrial is more favorable than GEA Group.
Institutional and Insider Ownership
98.5% of Gates Industrial shares are owned by institutional investors. 2.8% of Gates Industrial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
GEA Group has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Summary
GEA Group beats Gates Industrial on 8 of the 15 factors compared between the two stocks.
About GEA Group
GEA Group Aktiengesellschaft engages in the development and production of systems and components to the food, beverage, and pharmaceutical industries. It operates through Separation & Flow Technologies, Liquid & Power Technologies, Food & Health Technologies, Farm Technologies, and Heating & Refrigeration Technologies segments. The Separation & Flow Technologies segment manufacture process-related components and machinery including notably separators, decanters, homogenizers, valves, and pumps. The Liquid & Power Technologies segment offers brewing systems, liquid processing and filling, concentration, precision fermentation, crystallization, purification, drying, powder handling, and packaging, as well as systems for emission control for dairy, beverage, food, chemical, and other industries. The Food & Health Technologies segment engages in the preparation, marination, and processing of meat, poultry, seafood, and vegan products, pasta and confectionery products, baking, slicing, packaging, and frozen food processing for food processing industry; and provides tablet presses for pharmaceutical industry. The Farm Technologies segment offers customer solution for milk production and livestock farming, which includes automatic milking and feeding system, conventional milking solutions, manure handling, and digital herd management tool. The Heating & Refrigeration Technologies segment provides energy solution in the field of industrial refrigeration and heating for an array of industries including food, beverage, dairy, and oil and gas. The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005. GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany.
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.
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