Comparing Gates Industrial (NYSE:GTES) & Global Payment Technologies (OTCMKTS:GPTX)

Global Payment Technologies (OTCMKTS:GPTX) and Gates Industrial (NYSE:GTES) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

Global Payment Technologies has a beta of -15.84, indicating that its stock price is 1,684% less volatile than the S&P 500. Comparatively, Gates Industrial has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Valuation and Earnings

This table compares Global Payment Technologies and Gates Industrial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Payment Technologies	N/A	N/A	N/A	N/A	N/A
Gates Industrial	$3.41 billion	1.68	$194.90 million	$0.91	24.36

Gates Industrial has higher revenue and earnings than Global Payment Technologies.

Institutional & Insider Ownership

98.5% of Gates Industrial shares are held by institutional investors. 10.1% of Global Payment Technologies shares are held by insiders. Comparatively, 2.7% of Gates Industrial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Global Payment Technologies and Gates Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payment Technologies	0	0	0	0	0.00
Gates Industrial	0	5	8	0	2.62

Gates Industrial has a consensus price target of $27.17, suggesting a potential upside of 22.57%. Given Gates Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe Gates Industrial is more favorable than Global Payment Technologies.

Profitability

This table compares Global Payment Technologies and Gates Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Payment Technologies	N/A	N/A	N/A
Gates Industrial	6.93%	10.38%	5.22%

Summary

Gates Industrial beats Global Payment Technologies on 9 of the 10 factors compared between the two stocks.

About Global Payment Technologies

Global Payment Technologies Inc. designs and manufactures currency validators and paper currency stackers. Its equipment is used to process currency in gaming machines and vending machines that dispense products, services, coins, and other currencies. Its customers include gaming equipment and vending machine manufacturers in the United States and internationally. Global Payment Technologies Inc. was formerly known as Coin Bill Validator Inc. and changed its name to Global Payment Technologies Inc. in November 1994. The company was incorporated in 1988 and is based in Hauppauge, New York.

About Gates Industrial

Gates Industrial Corporation PLC designs and manufactures power transmission equipment. Its products serves harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation.