Gates Industrial (NYSE:GTES – Get Free Report) and Dover (NYSE:DOV – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Risk & Volatility
Gates Industrial has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Dover has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Valuation and Earnings
This table compares Gates Industrial and Dover”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gates Industrial | $3.44 billion | 2.01 | $251.40 million | $0.96 | 28.42 |
| Dover | $8.09 billion | 3.73 | $1.09 billion | $8.02 | 27.94 |
Dover has higher revenue and earnings than Gates Industrial. Dover is trading at a lower price-to-earnings ratio than Gates Industrial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gates Industrial and Dover’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gates Industrial | 7.23% | 10.00% | 5.15% |
| Dover | 13.30% | 18.01% | 10.10% |
Institutional & Insider Ownership
98.5% of Gates Industrial shares are held by institutional investors. Comparatively, 84.5% of Dover shares are held by institutional investors. 2.8% of Gates Industrial shares are held by company insiders. Comparatively, 1.1% of Dover shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for Gates Industrial and Dover, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gates Industrial | 0 | 4 | 7 | 0 | 2.64 |
| Dover | 0 | 6 | 8 | 0 | 2.57 |
Gates Industrial presently has a consensus target price of $31.00, indicating a potential upside of 13.63%. Dover has a consensus target price of $239.85, indicating a potential upside of 7.02%. Given Gates Industrial’s stronger consensus rating and higher possible upside, research analysts clearly believe Gates Industrial is more favorable than Dover.
Summary
Dover beats Gates Industrial on 8 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 Dover
Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.
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