Emerson Electric Company (EMR)vsGates Industrial Corporation plc (GTES)
EMR
Emerson Electric Company
$130.86
+0.55%
INDUSTRIALS · Cap: $73.18B
GTES
Gates Industrial Corporation plc
$23.64
+3.01%
INDUSTRIALS · Cap: $5.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Emerson Electric Company generates 428% more annual revenue ($18.19B vs $3.44B). EMR leads profitability with a 12.7% profit margin vs 7.3%. GTES trades at a lower P/E of 23.7x. GTES earns a higher WallStSmart Score of 58/100 (C).
EMR
Buy51
out of 100
Grade: C-
GTES
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-159.6%
Fair Value
$59.58
Current Price
$130.86
$71.28 premium
Margin of Safety
+41.6%
Fair Value
$45.40
Current Price
$23.64
$21.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Strong operational efficiency at 24.6%
Reasonable price relative to book value
Earnings expanding 36.4% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.1% revenue growth
4.9% earnings growth
3.2% revenue growth
Grey zone — moderate risk
ROE of 7.9% — below average capital efficiency
7.3% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : EMR
The strongest argument for EMR centers on Market Cap, Operating Margin.
Bull Case : GTES
The strongest argument for GTES centers on Price/Book, EPS Growth.
Bear Case : EMR
The primary concerns for EMR are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : GTES
The primary concerns for GTES are Revenue Growth, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
EMR carries more volatility with a beta of 1.24 — expect wider price swings.
EMR is growing revenue faster at 4.1% — sustainability is the question.
EMR generates stronger free cash flow (602M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GTES scores higher overall (58/100 vs 51/100). 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.
Emerson Electric Company
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.
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.
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