Gates Industrial Corporation plc (GTES)vsIllinois Tool Works Inc (ITW)
GTES
Gates Industrial Corporation plc
$25.63
-1.84%
INDUSTRIALS · Cap: $6.89B
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $71.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 371% more annual revenue ($16.22B vs $3.45B). ITW leads profitability with a 19.3% profit margin vs 7.2%. ITW trades at a lower P/E of 23.1x. ITW earns a higher WallStSmart Score of 60/100 (C).
GTES
Hold41
out of 100
Grade: D
ITW
Buy60
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.7%
Areas to Watch
Moderate valuation
0.4% revenue growth
Grey zone — moderate risk
ROE of 7.4% — below average capital efficiency
Expensive relative to growth rate
4.6% revenue growth
Weak financial health signals
Trading at 22.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : GTES
The strongest argument for GTES centers on 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 19.3% and operating margin at 25.7%.
Bear Case : GTES
The primary concerns for GTES are P/E Ratio, Revenue Growth, Altman Z-Score.
Bear Case : ITW
The primary concerns for ITW are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 2.83 is elevated, increasing financial risk.
Key Dynamics to Monitor
GTES carries more volatility with a beta of 1.27 — expect wider price swings.
ITW is growing revenue faster at 4.6% — sustainability is the question.
ITW generates stronger free cash flow (528M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 41/100), backed by strong 19.3% margins. Both earn "Buy" and "Hold" 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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