Eaton Corporation PLC (ETN)vsGates Industrial Corporation plc (GTES)
ETN
Eaton Corporation PLC
$375.00
+0.24%
INDUSTRIALS · Cap: $145.30B
GTES
Gates Industrial Corporation plc
$23.64
+3.01%
INDUSTRIALS · Cap: $5.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Eaton Corporation PLC generates 697% more annual revenue ($27.45B vs $3.44B). ETN leads profitability with a 14.9% profit margin vs 7.3%. GTES trades at a lower P/E of 23.7x. ETN earns a higher WallStSmart Score of 61/100 (C+).
ETN
Buy61
out of 100
Grade: C+
GTES
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.4%
Fair Value
$386.70
Current Price
$375.00
$11.70 premium
Margin of Safety
+41.6%
Fair Value
$45.40
Current Price
$23.64
$21.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Strong operational efficiency at 20.0%
Generating 1.8B in free cash flow
Reasonable price relative to book value
Earnings expanding 36.4% YoY
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
3.2% revenue growth
Grey zone — moderate risk
ROE of 7.9% — below average capital efficiency
7.3% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ETN
The strongest argument for ETN centers on Market Cap, Return on Equity, Operating Margin. Revenue growth of 13.1% demonstrates continued momentum.
Bull Case : GTES
The strongest argument for GTES centers on Price/Book, EPS Growth.
Bear Case : ETN
The primary concerns for ETN are P/E Ratio, PEG Ratio.
Bear Case : GTES
The primary concerns for GTES are Revenue Growth, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
GTES carries more volatility with a beta of 1.23 — expect wider price swings.
ETN is growing revenue faster at 13.1% — sustainability is the question.
ETN generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ETN scores higher overall (61/100 vs 58/100) and 13.1% revenue growth. GTES offers better value entry with a 41.6% margin of safety. 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.
Eaton Corporation PLC
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.
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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