Roper Technologies (NASDAQ:ROP) and Ralliant (NYSE:RAL) Critical Review

Ralliant (NYSE:RAL – Get Free Report) and Roper Technologies (NASDAQ:ROP – Get Free Report) are both manufacturing companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings for Ralliant and Roper Technologies, as reported by MarketBeat.com.

Ralliant presently has a consensus target price of $55.75, suggesting a potential upside of 14.57%. Roper Technologies has a consensus target price of $579.54, suggesting a potential upside of 29.98%. Given Roper Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Roper Technologies is more favorable than Ralliant.

Earnings and Valuation

This table compares Ralliant and Roper Technologies”s top-line revenue, earnings per share and valuation.

Roper Technologies has higher revenue and earnings than Ralliant. Roper Technologies is trading at a lower price-to-earnings ratio than Ralliant, indicating that it is currently the more affordable of the two stocks.

Dividends

Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Roper Technologies pays an annual dividend of $3.64 per share and has a dividend yield of 0.8%. Ralliant pays out 15.7% of its earnings in the form of a dividend. Roper Technologies pays out 25.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Roper Technologies has raised its dividend for 2 consecutive years. Roper Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

93.3% of Roper Technologies shares are held by institutional investors. 0.8% of Roper Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ralliant and Roper Technologies’ net margins, return on equity and return on assets.

Summary

Roper Technologies beats Ralliant on 15 of the 17 factors compared between the two stocks.

About Ralliant

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Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.

About Roper Technologies

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Roper Technologies, Inc. designs and develops software, and technology enabled products and solutions. It operates through three segments: Application Software, Network Software, and Technology Enabled Products. The Application Software segment offers management, campus solutions, diagnostic and laboratory information management, enterprise software and information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations. The Network Software segment provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; data analytics and information; and pharmacy software solutions. The Technology Enabled Products segment offers ultrasound accessories; dispensers and metering pumps; wireless sensor network and solutions automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; RFID card readers; and medical devices. It distributes and sells its products through direct sales, manufacturers’ representatives, resellers, and distributors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. The company was incorporated in 1981 and is based in Sarasota, Florida.