Gates Industrial (NYSE: GTES) and Mueller Industries (NYSE:MLI) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
This is a breakdown of recent ratings for Gates Industrial and Mueller Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gates Industrial currently has a consensus price target of $22.14, indicating a potential upside of 24.33%. Given Gates Industrial’s higher possible upside, analysts plainly believe Gates Industrial is more favorable than Mueller Industries.
Mueller Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Gates Industrial does not pay a dividend. Mueller Industries pays out 26.8% of its earnings in the form of a dividend. Gates Industrial has raised its dividend for 6 consecutive years.
Earnings and Valuation
This table compares Gates Industrial and Mueller Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gates Industrial||$3.04 billion||1.66||$151.30 million||N/A||N/A|
|Mueller Industries||$2.27 billion||0.67||$85.59 million||$1.49||17.83|
Gates Industrial has higher revenue and earnings than Mueller Industries.
Insider and Institutional Ownership
93.4% of Mueller Industries shares are owned by institutional investors. 2.8% of Mueller Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
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|
Gates Industrial beats Mueller Industries on 7 of the 13 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 Mueller Industries
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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