Dover (NYSE:DOV – Get Free Report) and Gates Industrial (NYSE:GTES – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Analyst Ratings
This is a summary of current recommendations and price targets for Dover and Gates Industrial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dover | 0 | 6 | 8 | 0 | 2.57 |
| Gates Industrial | 0 | 4 | 7 | 0 | 2.64 |
Dover presently has a consensus price target of $239.85, suggesting a potential upside of 7.02%. Gates Industrial has a consensus price target of $31.00, suggesting a potential upside of 13.63%. Given Gates Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe Gates Industrial is more favorable than Dover.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Dover | 13.30% | 18.01% | 10.10% |
| Gates Industrial | 7.23% | 10.00% | 5.15% |
Risk & Volatility
Dover has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Earnings & Valuation
This table compares Dover and Gates Industrial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dover | $8.09 billion | 3.73 | $1.09 billion | $8.02 | 27.94 |
| Gates Industrial | $3.44 billion | 2.01 | $251.40 million | $0.96 | 28.42 |
Dover has higher revenue and earnings than Gates Industrial. Dover is trading at a lower price-to-earnings ratio than Gates Industrial, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
84.5% of Dover shares are held by institutional investors. Comparatively, 98.5% of Gates Industrial shares are held by institutional investors. 1.1% of Dover shares are held by company insiders. Comparatively, 2.8% of Gates Industrial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Dover beats Gates Industrial on 8 of the 14 factors compared between the two stocks.
About Dover
Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.
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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