Head-To-Head Survey: DNOW vs. Gates Industrial

Comparing the performance and outlook of two industrial companies

Published on Feb. 16, 2026

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DNOW (NYSE:DNOW) and Gates Industrial (NYSE:GTES) are both industrial companies, but which one is the better investment? This article compares the two companies across key metrics like profitability, valuation, risk, dividends, institutional ownership, analyst recommendations, and earnings.

Why it matters

Analyzing the relative strengths and weaknesses of DNOW and Gates Industrial can help investors make more informed decisions about which industrial stock to add to their portfolio. The comparison provides insight into the competitive landscape and growth prospects of these two industry players.

The details

The analysis finds that Gates Industrial has higher revenue and earnings than DNOW, though DNOW is trading at a lower price-to-earnings ratio, making it more affordable. Gates Industrial also has a higher beta, indicating its stock price is more volatile than the overall market. Both companies have strong institutional ownership, with over 97% of shares held by large investors. The article also looks at factors like net margins, return on equity, and return on assets to assess the profitability of each firm.

  • The analysis is based on data as of February 16, 2026.

The players

DNOW Inc.

A distributor of downstream energy and industrial products, serving customers in the upstream, midstream, and downstream sectors of the energy industry as well as industrial and manufacturing companies.

Gates Industrial Corporation PLC

A designer and manufacturer of power transmission equipment serving industries like agriculture, construction, manufacturing, energy, and consumer applications.

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The takeaway

This head-to-head analysis provides a comprehensive look at the relative strengths and weaknesses of DNOW and Gates Industrial, helping investors determine which industrial stock may be the better fit for their portfolio based on factors like valuation, profitability, and risk profile.