Contrasting Gates Industrial (GTES) and Mueller Industries (MLI)

Gates Industrial (NYSE: GTES) and Mueller Industries (NYSE:MLI) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.


Mueller Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Gates Industrial does not pay a dividend. Mueller Industries pays out 26.8% of its earnings in the form of a dividend. Gates Industrial has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Gates Industrial and Mueller Industries, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gates Industrial 0 1 5 0 2.83
Mueller Industries 0 0 0 0 N/A

Gates Industrial presently has a consensus price target of $22.17, suggesting a potential upside of 22.33%. Given Gates Industrial’s higher probable upside, analysts plainly believe Gates Industrial is more favorable than Mueller Industries.

Valuation & Earnings

This table compares Gates Industrial and Mueller Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gates Industrial $2.75 billion 1.87 $57.70 million N/A N/A
Mueller Industries $2.27 billion 0.72 $85.59 million $1.49 18.91

Mueller Industries has lower revenue, but higher earnings than Gates Industrial.


This table compares Gates Industrial and Mueller Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gates Industrial N/A N/A N/A
Mueller Industries 3.78% 16.47% 6.62%

Insider & Institutional Ownership

93.4% of Mueller Industries shares are held by institutional investors. 2.8% of Mueller Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.


Mueller Industries beats Gates Industrial on 7 of the 13 factors compared between the two stocks.

Gates Industrial Company Profile

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.

Mueller Industries Company Profile

Mueller Industries, Inc. is a manufacturer of copper, brass, aluminum and plastic products. The Company operates through three segments: Piping Systems, Industrial Metals and Climate. The Company’s products include copper tube and fittings; line sets; brass and copper alloy rod, bar, and shapes; aluminum and brass forgings; aluminum impact extrusions; plastic fittings and valves; refrigeration valves and fittings; fabricated tubular products, and steel nipples. The Company also resells imported brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. The Company’s operations are located throughout the United States and in Canada, Mexico, Great Britain, South Korea, and China. The Company markets its products to the heating, ventilation, and air-conditioning (HVAC), plumbing, refrigeration, hardware, and other industries.

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