WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 432% more annual revenue ($18.64B vs $3.50B). EMR leads profitability with a 13.8% profit margin vs 10.4%. GTES trades at a lower P/E of 18.2x. GTES earns a higher WallStSmart Score of 64/100 (C+).

EMR

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 7.0Value: 4.3Quality: 5.5
Piotroski: 5/9Altman Z: 2.57

GTES

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 5.3Quality: 7.5
Piotroski: 6/9Altman Z: 1.96

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMR4 strengths · Avg: 8.3/10
Market CapQuality
$85.24B9/10

Large-cap with strong market position

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

EPS GrowthGrowth
23.0%8/10

Earnings expanding 23.0% YoY

Free Cash FlowQuality
$1.32B8/10

Generating 1.3B in free cash flow

GTES2 strengths · Avg: 9.0/10
EPS GrowthGrowth
205.8%10/10

Earnings expanding 205.8% YoY

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

EMR2 concerns · Avg: 4.0/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

P/E RatioValuation
32.5x4/10

Premium valuation, high expectations priced in

GTES2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : EMR

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

Bull Case : GTES

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

Bear Case : EMR

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

Bear Case : GTES

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

Key Dynamics to Monitor

GTES carries more volatility with a beta of 1.26 — expect wider price swings.

EMR is growing revenue faster at 7.0% — sustainability is the question.

EMR generates stronger free cash flow (1.3B), providing more financial flexibility.

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

Bottom Line

GTES scores higher overall (64/100 vs 61/100). 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.

Visit Website →

Want to dig deeper into these stocks?