Gates Industrial (NYSE:GTES – Get Free Report) and ITT (NYSE:ITT – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Analyst Recommendations
This is a breakdown of recent ratings for Gates Industrial and ITT, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gates Industrial | 0 | 4 | 9 | 0 | 2.69 |
| ITT | 0 | 1 | 8 | 0 | 2.89 |
Gates Industrial presently has a consensus target price of $32.45, indicating a potential upside of 21.51%. ITT has a consensus target price of $259.56, indicating a potential upside of 30.80%. Given ITT’s stronger consensus rating and higher possible upside, analysts clearly believe ITT is more favorable than Gates Industrial.
Insider & Institutional Ownership
Profitability
This table compares Gates Industrial and ITT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gates Industrial | 10.37% | 10.11% | 5.27% |
| ITT | 8.90% | 15.90% | 7.74% |
Risk and Volatility
Gates Industrial has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, ITT has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Valuation and Earnings
This table compares Gates Industrial and ITT”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gates Industrial | $3.50 billion | 1.93 | $251.40 million | $1.41 | 18.94 |
| ITT | $4.74 billion | 3.74 | $488.00 million | $5.10 | 38.91 |
ITT has higher revenue and earnings than Gates Industrial. Gates Industrial is trading at a lower price-to-earnings ratio than ITT, indicating that it is currently the more affordable of the two stocks.
Summary
ITT beats Gates Industrial on 9 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 ITT
ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets in the United States and internationally. The Motion Technologies segment manufactures brake pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, trucks, light- and heavy-duty commercial and military vehicles, buses, and trains. This segment sells its products under ITT Friction Technologies, KONI, Wolverine Advanced Materials, Axtone, Novitek, and GALT. brand names. The Industrial Process segment provides industrial pumps, valves, and plant optimization and remote monitoring systems and services; and aftermarket solutions, such as replacement parts and services. It serves various customers in industries, such as chemical, energy, mining, and other industrial process markets. This segment sells its products under Goulds Pumps, Bornemann, Engineered Valves, PRO Services, C'treat, i-ALERT, Rheinhütte Pumpen, and Habonim brand names. The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized products for critical applications supporting various markets, including aerospace and defense, industrial, transportation, medical, and energy. This segment provides connector products, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies; and control products consist of highly engineered actuation, flow control, energy absorption, environmental control, and composite component solutions for the aerospace, defense, and industrial markets under Cannon, VEAM, BIW Connector Systems, Aerospace Controls, Enidine, Compact Automation, Neo-Dyn Process Controls, Conoflow, and Micro-Mode brand names. The company was incorporated in 1920 and is headquartered in Stamford, Connecticut.
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