Chart Industries (NYSE:GTLS – Get Free Report) and Gates Industrial (NYSE:GTES – Get Free Report) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.
Volatility & Risk
Chart Industries has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Profitability
This table compares Chart Industries and Gates Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chart Industries | 1.55% | 14.17% | 4.87% |
| Gates Industrial | 6.93% | 10.38% | 5.22% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chart Industries | $4.16 billion | 2.24 | $218.50 million | $0.82 | 252.61 |
| Gates Industrial | $3.41 billion | 1.78 | $194.90 million | $0.91 | 25.79 |
Chart Industries has higher revenue and earnings than Gates Industrial. Gates Industrial is trading at a lower price-to-earnings ratio than Chart Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Chart Industries and Gates Industrial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chart Industries | 1 | 12 | 3 | 0 | 2.13 |
| Gates Industrial | 0 | 6 | 6 | 0 | 2.50 |
Chart Industries presently has a consensus target price of $206.00, indicating a potential downside of 0.55%. Gates Industrial has a consensus target price of $27.09, indicating a potential upside of 15.42%. Given Gates Industrial’s stronger consensus rating and higher possible upside, analysts clearly believe Gates Industrial is more favorable than Chart Industries.
Institutional and Insider Ownership
98.5% of Gates Industrial shares are held by institutional investors. 1.0% of Chart Industries shares are held by insiders. Comparatively, 2.7% of Gates Industrial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Gates Industrial beats Chart Industries on 8 of the 14 factors compared between the two stocks.
About Chart Industries
Chart Industries, Inc. engages in the designing, engineering, and manufacturing of process technologies and equipment for the gas and liquid molecules in the United States and internationally. The company operates in four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers natural gas processing solutions; process technology, liquefaction capabilities, and critical equipment for the LNG, include small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum heat exchangers, Core-in-Kettle heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the HVAC, power, and refining applications. Further, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. Chart Industries, Inc. was founded in 1859 and is headquartered in Ball Ground, Georgia.
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.
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