WallStSmart

Emerson Electric Company (EMR)vsGates Industrial Corporation plc (GTES)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 428% more annual revenue ($18.19B vs $3.44B). EMR leads profitability with a 12.7% profit margin vs 7.3%. GTES trades at a lower P/E of 23.7x. GTES earns a higher WallStSmart Score of 58/100 (C).

EMR

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.56

GTES

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 8.3Quality: 8.5
Piotroski: 6/9Altman Z: 1.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EMRSignificantly Overvalued (-159.6%)

Margin of Safety

-159.6%

Fair Value

$59.58

Current Price

$130.86

$71.28 premium

UndervaluedFair: $59.58Overvalued
GTESUndervalued (+41.6%)

Margin of Safety

+41.6%

Fair Value

$45.40

Current Price

$23.64

$21.76 discount

UndervaluedFair: $45.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMR2 strengths · Avg: 8.5/10
Market CapQuality
$73.18B9/10

Large-cap with strong market position

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

GTES2 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
36.4%8/10

Earnings expanding 36.4% YoY

Areas to Watch

EMR4 concerns · Avg: 4.0/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

EPS GrowthGrowth
4.9%4/10

4.9% earnings growth

GTES4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : EMR

The strongest argument for EMR centers on Market Cap, Operating Margin.

Bull Case : GTES

The strongest argument for GTES centers on Price/Book, EPS Growth.

Bear Case : EMR

The primary concerns for EMR are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : GTES

The primary concerns for GTES are Revenue Growth, Altman Z-Score, Return on Equity.

Key Dynamics to Monitor

EMR carries more volatility with a beta of 1.24 — expect wider price swings.

EMR is growing revenue faster at 4.1% — sustainability is the question.

EMR generates stronger free cash flow (602M), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GTES scores higher overall (58/100 vs 51/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Emerson Electric Company

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.

Gates Industrial Corporation plc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The company is headquartered in Denver, Colorado.

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