Gates Industrial Corporation PLC (GTES) vs Regal Rexnord Corporation (RRX)

Gates Industrial Corporation PLC and Regal Rexnord Corporation are both Specialty Industrial Machinery companies. Regal Rexnord Corporation is the larger, with a market value of $10.4B against $6.7B — 1.6× the size. Gates Industrial Corporation PLC trades at the lower P/E: 18.2× against 31.6×. Regal Rexnord Corporation grew revenue faster over the last twelve months: 3.50% against 3.34%. Gates Industrial Corporation PLC has the higher net margin (10.4% vs 5.35%) and the higher return on invested capital (5.42% vs 3.98%). Across the 22 metrics below, Gates Industrial Corporation PLC leads on 17 and Regal Rexnord Corporation on 5.

Valuation

Metric GTES RRX Specialty Industrial Machinery median
P/E 18.19 31.58 28.39
P/S 1.87 1.69 2.70
P/B 1.68 1.48 3.02
Price to free cash flow 17.25 21.47 23.32
EV/EBITDA 11.68 11.84 15.39
EV/Sales 2.29 2.38 2.81
Earnings yield 5.50% 3.17% 3.12%
Free cash flow yield 5.80% 4.66% 3.24%

Profitability

Metric GTES RRX Specialty Industrial Machinery median
Gross margin 39.69% 37.75% 35.90%
Operating margin 13.27% 11.67% 11.22%
Net margin 10.37% 5.35% 7.80%
Free cash flow margin 10.84% 7.89% 9.51%
Return on equity 9.69% 4.75% 10.50%
Return on assets 4.98% 2.34% 4.60%
Return on invested capital 5.42% 3.98% 5.36%

Growth

Metric GTES RRX Specialty Industrial Machinery median
Revenue growth (TTM) 3.34% 3.50% 6.45%
EPS growth (last fiscal year) 29.73% 42.86% 4.97%
Revenue growth, 5-year CAGR 4.27% 15.34% 8.31%
Net income growth, 5-year CAGR 25.92% 8.29% 5.04%

Health

Metric GTES RRX Specialty Industrial Machinery median
Debt to equity 0.59 0.67 0.35
Current ratio 3.24 2.28 2.11
Net debt to EBITDA 2.18 3.57 1.32

Dividend

Metric GTES RRX Specialty Industrial Machinery median
Dividend yield — 0.91% 1.10%
Payout ratio — 0.29 0.31

Size

Metric GTES RRX Specialty Industrial Machinery median
Market cap 6.67b 10.40b 1.91b

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