Roper Technologies (NYSE: ROP) and Snap-on (NYSE:SNA) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.
Institutional and Insider Ownership
94.3% of Roper Technologies shares are held by institutional investors. Comparatively, 99.4% of Snap-on shares are held by institutional investors. 2.5% of Roper Technologies shares are held by company insiders. Comparatively, 3.7% of Snap-on shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Roper Technologies pays an annual dividend of $1.65 per share and has a dividend yield of 0.6%. Snap-on pays an annual dividend of $3.28 per share and has a dividend yield of 2.2%. Roper Technologies pays out 22.6% of its earnings in the form of a dividend. Snap-on pays out 34.0% 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 increased its dividend for 19 consecutive years and Snap-on has increased its dividend for 8 consecutive years.
Risk & Volatility
Roper Technologies has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Snap-on has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
This is a breakdown of current recommendations for Roper Technologies and Snap-on, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Roper Technologies presently has a consensus target price of $297.64, indicating a potential upside of 5.24%. Snap-on has a consensus target price of $194.00, indicating a potential upside of 28.08%. Given Snap-on’s stronger consensus rating and higher possible upside, analysts clearly believe Snap-on is more favorable than Roper Technologies.
This table compares Roper Technologies and Snap-on’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Roper Technologies and Snap-on’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Roper Technologies||$4.61 billion||6.31||$971.77 million||$7.30||38.74|
|Snap-on||$3.69 billion||2.33||$557.70 million||$9.64||15.71|
Roper Technologies has higher revenue and earnings than Snap-on. Snap-on is trading at a lower price-to-earnings ratio than Roper Technologies, indicating that it is currently the more affordable of the two stocks.
Snap-on beats Roper Technologies 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.
Snap-on Company Profile
Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.
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