Critical Survey: KLX (KLXI) and Roper Technologies (ROP)
KLX (NASDAQ: KLXI) and Roper Technologies (NYSE:ROP) are both mid-cap aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Volatility & Risk
KLX has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
This table compares KLX and Roper Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|KLX||$1.60 billion||1.71||$240.70 million||$1.50||35.37|
|Roper Technologies||$4.18 billion||6.11||$1.41 billion||$6.68||37.41|
Roper Technologies has higher revenue and earnings than KLX. KLX is trading at a lower price-to-earnings ratio than Roper Technologies, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for KLX and Roper Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KLX presently has a consensus price target of $55.00, suggesting a potential upside of 3.66%. Roper Technologies has a consensus price target of $246.20, suggesting a potential downside of 1.48%. Given KLX’s higher probable upside, equities analysts plainly believe KLX is more favorable than Roper Technologies.
This table compares KLX and Roper Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
94.2% of Roper Technologies shares are held by institutional investors. 1.8% of KLX shares are held by insiders. Comparatively, 2.5% of Roper Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Roper Technologies pays an annual dividend of $1.40 per share and has a dividend yield of 0.6%. KLX does not pay a dividend. Roper Technologies pays out 21.0% of its earnings in the form of a dividend. Roper Technologies has raised its dividend for 18 consecutive years.
Roper Technologies beats KLX on 14 of the 17 factors compared between the two stocks.
KLX Company Profile
KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.
Roper Technologies Company Profile
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.
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