Roper Technologies (ROP) versus SPX Flow (FLOW) Head to Head Review

Roper Technologies (NYSE: ROP) and SPX Flow (NYSE:FLOW) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

93.0% of Roper Technologies shares are held by institutional investors. Comparatively, 86.7% of SPX Flow shares are held by institutional investors. 2.5% of Roper Technologies shares are held by company insiders. Comparatively, 3.0% of SPX Flow shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Roper Technologies has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, SPX Flow has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Roper Technologies and SPX Flow, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roper Technologies 0 3 8 0 2.73
SPX Flow 2 2 4 0 2.25

Roper Technologies presently has a consensus price target of $287.42, suggesting a potential upside of 4.02%. SPX Flow has a consensus price target of $48.80, suggesting a potential upside of 4.18%. Given SPX Flow’s higher probable upside, analysts clearly believe SPX Flow is more favorable than Roper Technologies.

Dividends

Roper Technologies pays an annual dividend of $1.65 per share and has a dividend yield of 0.6%. SPX Flow does not pay a dividend. Roper Technologies pays out 17.6% of its earnings in the form of a dividend. SPX Flow has increased its dividend for 19 consecutive years.

Profitability

This table compares Roper Technologies and SPX Flow’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roper Technologies 21.09% 15.28% 6.84%
SPX Flow 2.38% 6.13% 2.00%

Earnings and Valuation

This table compares Roper Technologies and SPX Flow’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Roper Technologies $4.61 billion 6.14 $971.77 million $9.38 29.46
SPX Flow $1.95 billion 1.02 $46.40 million $1.08 43.37

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

Summary

Roper Technologies beats SPX Flow on 11 of the 17 factors compared between the two stocks.

About Roper Technologies

Roper Technologies, Inc. is a technology company. The Company operates businesses that design and develop software and engineered products and solutions for various end markets, including healthcare, transportation, commercial construction, food, energy, water, education and academic research. The Company operates in four segments: Medical & Scientific Imaging, which offers products and software in medical applications, and digital imaging products; RF Technology, which provides radio frequency identification (RFID) communication technology and software solutions; Industrial Technology, which produces fluid handling pumps, materials analysis equipment and consumables, leak testing equipment, flow measurement and metering equipment, and Energy Systems & Controls, which produces control systems, fluid properties testing equipment, industrial valves and controls, vibration sensors and controls, and non-destructive inspection and measurement products and solutions.

About SPX Flow

SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.

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