Omnitek Engineering (OTCMKTS:OMTK) and Gates Industrial (NYSE:GTES) Head to Head Analysis

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

Volatility and Risk

Gates Industrial has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Omnitek Engineering has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Gates Industrial and Omnitek Engineering, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gates Industrial	0	6	6	0	2.50
Omnitek Engineering	0	0	0	0	0.00

Gates Industrial currently has a consensus price target of $27.18, suggesting a potential upside of 23.36%. Given Gates Industrial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gates Industrial is more favorable than Omnitek Engineering.

Valuation & Earnings

This table compares Gates Industrial and Omnitek Engineering”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gates Industrial	$3.41 billion	1.67	$194.90 million	$0.91	24.21
Omnitek Engineering	$1.02 million	0.31	-$170,000.00	$0.02	0.72

Gates Industrial has higher revenue and earnings than Omnitek Engineering. Omnitek Engineering is trading at a lower price-to-earnings ratio than Gates Industrial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Gates Industrial and Omnitek Engineering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gates Industrial	6.93%	10.38%	5.22%
Omnitek Engineering	18.80%	-22.26%	28.98%

Institutional & Insider Ownership

98.5% of Gates Industrial shares are owned by institutional investors. 2.7% of Gates Industrial shares are owned by insiders. Comparatively, 45.5% of Omnitek Engineering 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 Omnitek Engineering on 11 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 Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.