Contrasting Roper Technologies (ROP) & Ingersoll-Rand PLC (Ireland) (IR)

Roper Technologies (NYSE: ROP) and Ingersoll-Rand PLC (Ireland) (NYSE:IR) are both large-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Roper Technologies and Ingersoll-Rand PLC (Ireland), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roper Technologies 0 2 8 0 2.80
Ingersoll-Rand PLC (Ireland) 0 8 6 0 2.43

Roper Technologies presently has a consensus target price of $251.91, suggesting a potential downside of 4.89%. Ingersoll-Rand PLC (Ireland) has a consensus target price of $99.67, suggesting a potential upside of 10.26%. Given Ingersoll-Rand PLC (Ireland)’s higher possible upside, analysts plainly believe Ingersoll-Rand PLC (Ireland) is more favorable than Roper Technologies.

Risk and Volatility

Roper Technologies has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Ingersoll-Rand PLC (Ireland) has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares Roper Technologies and Ingersoll-Rand PLC (Ireland)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roper Technologies 16.17% 14.47% 6.20%
Ingersoll-Rand PLC (Ireland) 7.47% 16.65% 6.41%

Valuation and Earnings

This table compares Roper Technologies and Ingersoll-Rand PLC (Ireland)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Roper Technologies $3.79 billion 7.15 $658.64 million $6.88 38.50
Ingersoll-Rand PLC (Ireland) $13.51 billion 1.67 $1.48 billion $4.00 22.60

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

Institutional and Insider Ownership

93.5% of Roper Technologies shares are held by institutional investors. Comparatively, 82.4% of Ingersoll-Rand PLC (Ireland) shares are held by institutional investors. 2.5% of Roper Technologies shares are held by company insiders. Comparatively, 0.6% of Ingersoll-Rand PLC (Ireland) shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Roper Technologies pays an annual dividend of $1.40 per share and has a dividend yield of 0.5%. Ingersoll-Rand PLC (Ireland) pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Roper Technologies pays out 20.3% of its earnings in the form of a dividend. Ingersoll-Rand PLC (Ireland) pays out 45.0% 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 6 consecutive years and Ingersoll-Rand PLC (Ireland) has raised its dividend for 18 consecutive years. Ingersoll-Rand PLC (Ireland) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Roper Technologies beats Ingersoll-Rand PLC (Ireland) on 9 of the 17 factors compared between the two stocks.

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.

Ingersoll-Rand PLC (Ireland) Company Profile

Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.

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