In a comprehensive analysis of two manufacturing companies, Ralliant (NYSE:RAL) and Roper Technologies (NASDAQ:ROP), Roper Technologies emerges as the stronger investment option based on several financial metrics. This assessment considers their valuation, earnings, risk factors, dividends, institutional ownership, analyst recommendations, and profitability.
Earnings and Valuation Comparison
The financial performance of the two companies reveals significant disparities. Roper Technologies reported a gross revenue of $7.72 billion and a net income of $1.55 billion, translating to an earnings per share (EPS) of $14.51 and a price-to-earnings (P/E) ratio of 30.58. In contrast, Ralliant’s financial details remain undisclosed, with an EPS of $1.27 and an implied P/E ratio of 36.16.
Roper’s lower P/E ratio suggests that it is currently trading at a more attractive valuation compared to Ralliant. This indicates that investors may find Roper Technologies to be a more affordable stock option.
Analyst Ratings and Profitability Insights
Current ratings from analysts, as reported by MarketBeat.com, show a clear preference for Roper Technologies. Ralliant has a consensus target price of $55.75, suggesting a potential upside of 21.39%. Meanwhile, Roper Technologies enjoys a higher consensus target price of $579.54, indicating a potential upside of 30.60%.
In terms of profitability, Roper Technologies boasts a net margin of 20.34%, a return on equity of 10.92%, and a return on assets of 6.50%. Ralliant, however, does not provide enough data for these metrics, further highlighting Roper’s superior financial standing.
Institutional ownership also plays a significant role in evaluating these companies. Approximately 93.3% of Roper Technologies shares are held by institutional investors, indicating strong confidence from large financial entities. In contrast, Ralliant has only 0.8% of its shares held by company insiders, suggesting a lack of insider investment.
Dividend Analysis
When it comes to dividends, Ralliant offers an annual dividend of $0.20 per share, resulting in a yield of 0.4%. Roper Technologies, on the other hand, pays an annual dividend of $3.64 per share, with a yield of 0.8%. Ralliant distributes 15.7% of its earnings as dividends, while Roper allocates 25.1%. Roper has also raised its dividend for two consecutive years, establishing a stronger track record in this area.
Overall, Roper Technologies surpasses Ralliant in most financial metrics, indicating its position as a more favorable stock option. Roper leads in revenue, earnings, analyst ratings, profitability, and dividend yield.
About the Companies
Ralliant Corporation, based in Raleigh, North Carolina, specializes in precision technologies, focusing on designing and manufacturing precision instruments and engineered products. In contrast, Roper Technologies, Inc., headquartered in Sarasota, Florida, designs and develops a diverse range of software and technology-enabled products. Its operations span across three segments: Application Software, Network Software, and Technology Enabled Products.
With its robust financial health and strong institutional backing, Roper Technologies stands out as the superior investment option compared to Ralliant. The data suggests that investors may find better long-term growth potential in Roper’s stock.
