Head-To-Head Review: Roper Technologies (ROP) & Parker-Hannifin Corporation (NYSE:PH)

Parker-Hannifin Corporation (NYSE: PH) and Roper Technologies (NYSE:ROP) are both large-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Valuation and Earnings

This table compares Parker-Hannifin Corporation and Roper Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Parker-Hannifin Corporation $12.03 billion 1.72 $1.74 billion $7.23 21.46
Roper Technologies $4.18 billion 5.58 $1.41 billion $6.68 34.16

Parker-Hannifin Corporation has higher revenue and earnings than Roper Technologies. Parker-Hannifin Corporation is trading at a lower price-to-earnings ratio than Roper Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Parker-Hannifin Corporation and Roper Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parker-Hannifin Corporation 0 3 14 0 2.82
Roper Technologies 0 2 7 0 2.78

Parker-Hannifin Corporation presently has a consensus target price of $167.93, suggesting a potential upside of 8.24%. Roper Technologies has a consensus target price of $240.60, suggesting a potential upside of 5.43%. Given Parker-Hannifin Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Parker-Hannifin Corporation is more favorable than Roper Technologies.

Institutional and Insider Ownership

80.7% of Parker-Hannifin Corporation shares are owned by institutional investors. Comparatively, 96.7% of Roper Technologies shares are owned by institutional investors. 2.7% of Parker-Hannifin Corporation shares are owned by company insiders. Comparatively, 2.5% of Roper Technologies shares are owned 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.

Profitability

This table compares Parker-Hannifin Corporation and Roper Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Parker-Hannifin Corporation 8.18% 22.90% 8.06%
Roper Technologies 16.44% 13.66% 6.07%

Volatility and Risk

Parker-Hannifin Corporation has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Dividends

Parker-Hannifin Corporation pays an annual dividend of $2.64 per share and has a dividend yield of 1.7%. Roper Technologies pays an annual dividend of $1.40 per share and has a dividend yield of 0.6%. Parker-Hannifin Corporation pays out 36.5% of its earnings in the form of a dividend. Roper Technologies pays out 21.0% 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 18 consecutive years.

Summary

Parker-Hannifin Corporation beats Roper Technologies on 11 of the 17 factors compared between the two stocks.

Parker-Hannifin Corporation Company Profile

Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. The Diversified Industrial Segment consists of Automation Group, Engineered Materials Group, Filtration Group, Fluid Connectors Group, Hydraulics Group and Instrumentation Group. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircrafts.

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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