Gates Industrial (NYSE:GTES – Get Free Report) and Mitsubishi Heavy Industries (OTCMKTS:MHVYF – 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 analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & 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, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Gates Industrial and Mitsubishi Heavy Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gates Industrial | 0 | 4 | 9 | 0 | 2.69 |
| Mitsubishi Heavy Industries | 0 | 1 | 1 | 1 | 3.00 |
Earnings & Valuation
This table compares Gates Industrial and Mitsubishi Heavy Industries”s 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 | 18.92 |
| Mitsubishi Heavy Industries | $33.04 billion | 2.55 | $2.19 billion | $0.76 | 32.89 |
Mitsubishi Heavy Industries has higher revenue and earnings than Gates Industrial. Gates Industrial is trading at a lower price-to-earnings ratio than Mitsubishi Heavy Industries, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Gates Industrial has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Mitsubishi Heavy Industries has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Profitability
This table compares Gates Industrial and Mitsubishi Heavy Industries’ 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% |
| Mitsubishi Heavy Industries | 7.04% | 12.97% | 4.99% |
Summary
Gates Industrial beats Mitsubishi Heavy Industries on 8 of the 15 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 Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. It operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. The company offers thermal, renewable energy, nuclear power generation, and engine power plants; oil and gas production plants; lithium-ion battery products and fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. It also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, the company offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, it provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship and maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; CO2 capture plants; and after-sales services. The company was founded in 1884 and is headquartered in Tokyo, Japan.
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