Gates Industrial Corporation plc (GTES)vsIllinois Tool Works Inc (ITW)
GTES
Gates Industrial Corporation plc
$26.04
+1.60%
INDUSTRIALS · Cap: $6.49B
ITW
Illinois Tool Works Inc
$268.16
+1.12%
INDUSTRIALS · Cap: $76.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 370% more annual revenue ($16.47B vs $3.50B). ITW leads profitability with a 19.4% 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+).
GTES
Buy64
out of 100
Grade: C+
ITW
Buy62
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 205.8% YoY
Reasonable price relative to book value
Every $100 of equity generates 110 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.9%
Areas to Watch
Grey zone — moderate risk
ROE of 7.4% — below average capital efficiency
Expensive relative to growth rate
Weak financial health signals
Trading at 26.4x book value
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : GTES
The strongest argument for GTES centers on EPS Growth, Price/Book.
Bull Case : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.4% and operating margin at 26.9%.
Bear Case : GTES
The primary concerns for GTES are Altman Z-Score, Return on Equity.
Bear Case : ITW
The primary concerns for ITW are PEG Ratio, Piotroski F-Score, Price/Book. Debt-to-equity of 3.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
GTES profiles as a value stock while ITW is a mature play — different risk/reward profiles.
GTES carries more volatility with a beta of 1.26 — expect wider price swings.
GTES is growing revenue faster at 6.6% — sustainability is the question.
ITW generates stronger free cash flow (631M), providing more financial flexibility.
Bottom Line
GTES scores higher overall (64/100 vs 62/100). 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.
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 →Illinois Tool Works Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Illinois Tool Works Inc. or ITW is an American company that produces engineered fasteners and components, equipment and consumable systems, and specialty products.
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