Gates Industrial Corporation PLC (GTES) vs The Middleby Corporation (MIDD)

Gates Industrial Corporation PLC and The Middleby Corporation are both Specialty Industrial Machinery companies. Gates Industrial Corporation PLC is the larger, with a market value of $6.7B against $4.9B — 1.4× the size. The Middleby Corporation has negative trailing earnings, so its P/E is not meaningful; Gates Industrial Corporation PLC trades at 18.9×. The Middleby Corporation grew revenue faster over the last twelve months: 22.8% against 3.34%. Gates Industrial Corporation PLC has the higher net margin (10.4% vs −13.9%) and the lower return on invested capital (5.42% vs 8.97%). Across the 21 metrics below, Gates Industrial Corporation PLC leads on 11 and The Middleby Corporation on 10.

Valuation

Metric GTES MIDD Specialty Industrial Machinery median
P/E 18.92 n/m 29.62
P/S 1.94 1.44 2.77
P/B 1.75 2.21 3.04
Price to free cash flow 17.93 10.15 23.81
EV/EBITDA 12.06 9.81 16.05
EV/Sales 2.36 1.98 2.94
Earnings yield 5.29% (8.60%) 3.08%
Free cash flow yield 5.58% 9.86% 3.12%

Profitability

Metric GTES MIDD Specialty Industrial Machinery median
Gross margin 39.69% 38.40% 35.90%
Operating margin 13.27% 17.07% 11.22%
Net margin 10.37% (13.91%) 7.80%
Free cash flow margin 10.84% 14.22% 9.51%
Return on equity 9.69% (16.16%) 11.10%
Return on assets 4.98% (7.42%) 4.63%
Return on invested capital 5.42% 8.97% 5.37%

Growth

Metric GTES MIDD Specialty Industrial Machinery median
Revenue growth (TTM) 3.34% 22.83% 6.45%
EPS growth (last fiscal year) 29.73% (167.34%) —
Revenue growth, 5-year CAGR 4.27% 4.96% 8.31%
Net income growth, 5-year CAGR 25.92% 0.00% 5.04%

Health

Metric GTES MIDD Specialty Industrial Machinery median
Debt to equity 0.59 0.90 0.35
Current ratio 3.24 1.99 2.11
Net debt to EBITDA 2.18 2.87 1.32

Dividend

Metric GTES MIDD Specialty Industrial Machinery median
Dividend yield — 0.23% 1.12%
Payout ratio 0.00 0.00 0.17

Size

Metric GTES MIDD Specialty Industrial Machinery median
Market cap 6.65b 4.89b 1.97b

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