Reviewing HUHUTECH International Group (NASDAQ:HUHU) & Gates Industrial (NYSE:GTES)

HUHUTECH International Group (NASDAQ:HUHU) 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 institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings for HUHUTECH International Group and Gates Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUHUTECH International Group	1	0	0	0	1.00
Gates Industrial	0	6	6	0	2.50

Gates Industrial has a consensus price target of $27.09, indicating a potential upside of 17.85%. Given Gates Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Gates Industrial is more favorable than HUHUTECH International Group.

Volatility & Risk

HUHUTECH International Group has a beta of -1.44, suggesting that its stock price is 244% less volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Valuation & Earnings

This table compares HUHUTECH International Group and Gates Industrial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUHUTECH International Group	$18.15 million	10.03	-$1.93 million	N/A	N/A
Gates Industrial	$3.41 billion	1.74	$194.90 million	$0.91	25.26

Gates Industrial has higher revenue and earnings than HUHUTECH International Group.

Profitability

This table compares HUHUTECH International Group and Gates Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HUHUTECH International Group	N/A	N/A	N/A
Gates Industrial	6.93%	10.38%	5.22%

Institutional & Insider Ownership

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

Summary

Gates Industrial beats HUHUTECH International Group on 11 of the 12 factors compared between the two stocks.

About HUHUTECH International Group

HUHUTECH International Group, Inc. designs and provides customized high-purity gas and chemical production system and equipment. The company was founded by Yu Jun Xiao on July 8, 2021 and is headquartered in Wuxi City, China.

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.