Global Payment Technologies (OTCMKTS:GPTX) versus Gates Industrial (NYSE:GTES) Critical Comparison

Global Payment Technologies (OTCMKTS:GPTX) and Gates Industrial (NYSE:GTES) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional and Insider Ownership

98.5% of Gates Industrial shares are owned by institutional investors. 10.1% of Global Payment Technologies shares are owned by company insiders. Comparatively, 2.7% of Gates Industrial shares are owned 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.

Profitability

This table compares Global Payment Technologies and Gates Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Payment Technologies	N/A	N/A	N/A
Gates Industrial	6.93%	10.38%	5.22%

Analyst Recommendations

This is a breakdown of current ratings for Global Payment Technologies and Gates Industrial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payment Technologies	0	0	0	0	0.00
Gates Industrial	0	5	7	0	2.58

Gates Industrial has a consensus target price of $27.27, indicating a potential upside of 24.69%. Given Gates Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Gates Industrial is more favorable than Global Payment Technologies.

Valuation and Earnings

This table compares Global Payment Technologies and Gates Industrial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Payment Technologies	N/A	N/A	N/A	N/A	N/A
Gates Industrial	$3.41 billion	1.66	$194.90 million	$0.91	24.04

Gates Industrial has higher revenue and earnings than Global Payment Technologies.

Volatility & Risk

Global Payment Technologies has a beta of -15.78, suggesting that its stock price is 1,678% less volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Summary

Gates Industrial beats Global Payment Technologies on 9 of the 10 factors compared between the two stocks.

About Global Payment Technologies

Global Payment Technologies Inc. designs and manufactures currency validators and paper currency stackers. Its equipment is used to process currency in gaming machines and vending machines that dispense products, services, coins, and other currencies. Its customers include gaming equipment and vending machine manufacturers in the United States and internationally. Global Payment Technologies Inc. was formerly known as Coin Bill Validator Inc. and changed its name to Global Payment Technologies Inc. in November 1994. The company was incorporated in 1988 and is based in Hauppauge, New York.

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.