This paper describes the electromagnetic and mechanical characteristics of coaxial magnetic gear (CMG) with a low gear ratio. The analysis models are restricted to a CMG with a gear ratio of less than 2. The electromagnetic characteristics including transmitted torque and iron losses are presented according to the variation of the gear ratio. The pole pairs of high speed rotor are chosen as 6, 8 and 10 by considering the torque capability. As the gear ratio approaches 1, both iron losses on the ferromagnetic materials and eddy current losses on the rotor permanent magnets are increased. The radial and tangential forces on the modulating pieces are calculated using the Maxwell stress tensor. When the maximum force is exerted on the modulating pieces, the mechanical characteristics including stress and deformation are derived by structural analysis. In CMG models with a low gear ratio, the maximum radial force acting on modulating pieces is larger than that in CMG models with a high gear ratio, and the normal stress and normal deformation are increased in a CMG with a low gear ratio. Therefore, modulating pieces should be designed to withstand larger radial forces in CMG with a low gear ratio compared to CMG with a high gear ratio.