Broadwind Energy (NASDAQ:BWEN – Get Free Report) and Gates Industrial (NYSE:GTES – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Earnings and Valuation
This table compares Broadwind Energy and Gates Industrial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Broadwind Energy | $143.14 million | 0.49 | $1.15 million | $0.22 | 13.64 |
| Gates Industrial | $3.41 billion | 1.74 | $194.90 million | $0.91 | 25.29 |
Insider & Institutional Ownership
33.3% of Broadwind Energy shares are held by institutional investors. Comparatively, 98.5% of Gates Industrial shares are held by institutional investors. 6.4% of Broadwind Energy 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, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Broadwind Energy and Gates Industrial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Broadwind Energy | 0 | 2 | 2 | 0 | 2.50 |
| Gates Industrial | 0 | 6 | 6 | 0 | 2.50 |
Broadwind Energy presently has a consensus price target of $4.50, indicating a potential upside of 50.00%. Gates Industrial has a consensus price target of $27.09, indicating a potential upside of 17.74%. Given Broadwind Energy’s higher possible upside, analysts clearly believe Broadwind Energy is more favorable than Gates Industrial.
Risk & Volatility
Broadwind Energy has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Profitability
This table compares Broadwind Energy and Gates Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Broadwind Energy | 3.37% | -2.05% | -0.99% |
| Gates Industrial | 6.93% | 10.38% | 5.22% |
Summary
Gates Industrial beats Broadwind Energy on 10 of the 13 factors compared between the two stocks.
About Broadwind Energy
Broadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. Its Gearing segment provides gearing, gearboxes, and precision machined components to a range of customers in diverse markets, including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and supply chain solutions, light fabrication, inventory management, and kitting and assembly services for combined cycle natural gas turbine market. It sells its products to the energy, mining, and infrastructure sectors through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, 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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