Ralliant vs. Roper Technologies: A Comparative Stock Analysis

Ralliant (NYSE:RAL) and Roper Technologies (NASDAQ:ROP) are both established players in the manufacturing sector, but a closer examination reveals which company offers a more compelling investment opportunity. This analysis compares the two firms based on key financial metrics, including earnings, valuation, dividends, and profitability.

Financial Performance and Valuation

Roper Technologies significantly outpaces Ralliant in terms of gross revenue and earnings. In the last fiscal year, Roper generated $7.72 billion in revenue, with a net income of $1.55 billion, translating into earnings per share of $14.51. In contrast, Ralliant’s financial data remains unreported, but it recorded an earnings per share of $1.27.

The price-to-earnings (P/E) ratio further illustrates Roper Technologies’ favorable position, standing at 30.58 compared to Ralliant’s 36.16. This suggests that Roper Technologies is currently more affordable, presenting a potentially lucrative investment.

Analyst Ratings and Market Sentiment

Analyst recommendations also favor Roper Technologies over Ralliant. According to data from MarketBeat.com, Ralliant has garnered a consensus target price of $55.75, indicating a potential upside of 21.39%. Meanwhile, Roper Technologies boasts a higher consensus target price of $579.54, reflecting a potential upside of 30.60%.

Furthermore, Roper has a stronger overall rating score of 12.60 compared to Ralliant’s 2.27, highlighting a more favorable outlook among analysts.

Profitability and Ownership Structure

In terms of profitability, Roper Technologies leads with a net margin of 20.34%, a return on equity of 10.92%, and a return on assets of 6.50%. Ralliant’s metrics are currently not available.

Institutional ownership also plays a critical role in assessing a company’s stability and growth potential. An impressive 93.3% of Roper Technologies’ shares are held by institutional investors, indicating strong confidence in its long-term prospects. In contrast, Ralliant has minimal institutional ownership at 0.8%.

Dividend Comparison

When it comes to dividends, Roper Technologies offers a more attractive package. The company pays an annual dividend of $3.64 per share, resulting in a dividend yield of 0.8%. Ralliant, on the other hand, provides a smaller annual dividend of $0.20 per share, yielding 0.4%.

Roper Technologies also has a longer track record of dividend growth, having raised its payout for two consecutive years. Both companies maintain healthy payout ratios—Ralliant at 15.7% and Roper at 25.1%—suggesting they can sustain their dividends in the coming years.

Conclusion

In summary, Roper Technologies outperforms Ralliant across multiple financial metrics, including revenue, earnings, analyst ratings, and dividend yield. With a robust institutional ownership presence and a strong profit margin, Roper Technologies emerges as the more favorable investment choice.

About Ralliant: Ralliant Corporation specializes in precision technologies, focusing on the design and manufacture of precision instruments and engineered products. The company is headquartered in Raleigh, N.C.

About Roper Technologies: Roper Technologies, Inc. develops software and technology-enabled products across various segments, including Application Software, Network Software, and Technology Enabled Products. Incorporated in 1981, Roper is based in Sarasota, Florida.