Gates Industrial (NYSE: GTES) and Mueller Industries (NYSE:MLI) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
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 23.4% of its earnings in the form of a dividend. Mueller Industries has increased its dividend for 6 consecutive years.
93.4% of Mueller Industries shares are owned by institutional investors. 2.8% of Mueller Industries shares are owned by company 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.
This is a summary of current ratings and recommmendations for Gates Industrial and Mueller Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gates Industrial presently has a consensus price target of $22.17, indicating a potential upside of 23.49%. Given Gates Industrial’s higher possible upside, equities research analysts plainly believe Gates Industrial is more favorable than Mueller Industries.
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|
Valuation & Earnings
This table compares Gates Industrial and Mueller Industries’ 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||1.86||$57.70 million||$0.12||149.58|
|Mueller Industries||$2.27 billion||0.71||$85.59 million||$1.71||16.45|
Mueller Industries has lower revenue, but higher earnings than Gates Industrial. Mueller Industries is trading at a lower price-to-earnings ratio than Gates Industrial, indicating that it is currently the more affordable of the two stocks.
Mueller Industries beats Gates Industrial on 9 of the 15 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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