Head to Head Review: Roper Technologies (ROP) & SPX Flow (FLOW)

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

Profitability

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

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SPX Flow $1.95 billion 1.02 $46.40 million $1.08 43.24
Roper Technologies $4.61 billion 6.02 $971.77 million $9.38 28.90

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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SPX Flow and Roper Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPX Flow 2 1 4 0 2.29
Roper Technologies 0 2 9 0 2.82

SPX Flow currently has a consensus target price of $48.50, indicating a potential upside of 3.85%. Roper Technologies has a consensus target price of $283.42, indicating a potential upside of 4.55%. Given Roper Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Roper Technologies is more favorable than SPX Flow.

Volatility and Risk

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

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. Roper Technologies has increased its dividend for 19 consecutive years.

Institutional & Insider Ownership

86.7% of SPX Flow shares are owned by institutional investors. Comparatively, 93.0% of Roper Technologies shares are owned by institutional investors. 3.0% of SPX Flow shares are owned by insiders. Comparatively, 2.5% of Roper Technologies shares are owned 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.

Summary

Roper Technologies beats SPX Flow on 13 of the 17 factors compared between the two stocks.

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.

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.

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