AOS vs GTES: Smith AO and Gates Industrial Corporation compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Smith AO is the larger company, worth $7.6B, about 1.2 times Gates Industrial Corporation.
- Gates Industrial Corporation grew revenue faster over the last year (+6.5% vs -0.7%).
- Smith AO keeps more of each dollar of revenue as operating profit (17.5% vs 13.3%).
- On earnings, Smith AO is the cheaper stock (14.8x vs 25.9x).
- Gates Industrial Corporation's price assumes faster free cash flow growth: about 2% a year, against 0% for Smith AO (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | AOS | GTES |
|---|---|---|
| Market cap | $7.6B | $6.3B |
| Share price | $56.38 | $26.67 |
| Revenue (last fiscal year) | $3.8B | $3.4B |
| Free cash flow (last fiscal year) | $546M | $405M |
| Revenue growth, last year | -0.7% | +6.5% |
| Revenue growth per year, last 5 fiscal years | +2.0% | -0.2% |
| Operating margin | 17.5% | 13.3% |
| Net margin | 13.2% | 10.4% |
| Return on equity | 27.2% | 10.3% |
| P/E (trailing) | 14.8x | 25.9x |
| Price / free cash flow | 14.0x | 15.4x |
| EV / EBITDA | 11.1x | 12.3x |
| FCF growth the price implies | 0.31% | 1.6% |
| Dividend yield | 2.4% | — |
| Debt / equity | 0.98x | 0.99x |
| Fundamental grade | C | B |
| Superinvestors holding it | 4 | 5 |
| Insider purchases, last 12 months | 0 | 2 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Smith AO
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $3.5B | $566M | 19.3% |
| 2022 | $3.8B | $321M | 9.6% |
| 2023 | $3.9B | $598M | 19.3% |
| 2024 | $3.8B | $474M | 18.5% |
| 2025 | $3.8B | $546M | 19.0% |
Gates Industrial Corporation
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $3.5B | $305M | 13.9% |
| 2022 | $3.6B | $188M | 10.8% |
| 2023 | $3.6B | $420M | 12.9% |
| 2024 | $3.4B | $296M | 13.9% |
| 2025 | $3.4B | $405M | 13.5% |
Where the revenue comes from
Smith AO · by segments, 2025
North America$3.0B77%
Rest of World$866M23%
Gates Industrial Corporation · by segments, 2025
Power Transmission$2.1B62%
Fluid Power$1.3B38%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open AOS in InvestinglyQuestions
Which is bigger, Smith AO or Gates Industrial Corporation?
Smith AO (AOS), at $7.6B against $6.3B.
Is AOS or GTES cheaper?
By trailing P/E, Smith AO (14.8x) is cheaper than Gates Industrial Corporation (25.9x). A lower multiple can also mean the market expects less growth.
Which grows faster, AOS or GTES?
Gates Industrial Corporation: revenue grew +6.5% over the last year, against -0.7%.
More comparisons
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.