Reviewing Gates Industrial (NYSE:GTES) and Revolution Acceleration Acquisition (OTCMKTS:RAACU)

Gates Industrial (NYSE:GTES) and Revolution Acceleration Acquisition (OTCMKTS:RAACU) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Valuation and Earnings

This table compares Gates Industrial and Revolution Acceleration Acquisition’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gates Industrial	$3.48 billion	1.25	$232.90 million	$0.91	18.36
Revolution Acceleration Acquisition	N/A	N/A	N/A	N/A	N/A

Gates Industrial has higher revenue and earnings than Revolution Acceleration Acquisition.

Profitability

This table compares Gates Industrial and Revolution Acceleration Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gates Industrial	7.24%	10.27%	5.03%
Revolution Acceleration Acquisition	N/A	N/A	N/A

Institutional and Insider Ownership

98.5% of Gates Industrial shares are owned by institutional investors. 2.3% of Gates Industrial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gates Industrial and Revolution Acceleration Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gates Industrial	0	4	5	0	2.56
Revolution Acceleration Acquisition	0	0	0	0	N/A

Gates Industrial presently has a consensus price target of $19.00, suggesting a potential upside of 13.70%. Given Gates Industrial’s higher probable upside, research analysts clearly believe Gates Industrial is more favorable than Revolution Acceleration Acquisition.

Summary

Gates Industrial beats Revolution Acceleration Acquisition on 8 of the 8 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 Revolution Acceleration Acquisition

Revolution Acceleration Acquisition Corp does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was formerly known as Acceleration Acquisition Corporation and changed its name to Revolution Acceleration Acquisition Corp in November 2020. Revolution Acceleration Acquisition Corp was incorporated in 2020 and is based in Washington, District of Columbia.