Timken (NYSE: TKR) and Roper Technologies (NYSE:ROP) are both mid-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Earnings & Valuation
This table compares Timken and Roper Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Timken||$2.67 billion||1.54||$152.60 million||$2.51||21.14|
|Roper Technologies||$3.79 billion||7.55||$658.64 million||$6.88||40.64|
This table compares Timken and Roper Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
79.3% of Timken shares are held by institutional investors. Comparatively, 93.5% of Roper Technologies shares are held by institutional investors. 11.1% of Timken shares are held by company insiders. Comparatively, 2.5% of Roper Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Timken pays an annual dividend of $1.08 per share and has a dividend yield of 2.0%. Roper Technologies pays an annual dividend of $1.65 per share and has a dividend yield of 0.6%. Timken pays out 43.0% of its earnings in the form of a dividend. Roper Technologies pays out 24.0% 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. Timken has raised its dividend for 4 consecutive years and Roper Technologies has raised its dividend for 19 consecutive years.
Volatility & Risk
Timken has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Timken and Roper Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Timken presently has a consensus target price of $51.33, suggesting a potential downside of 3.24%. Roper Technologies has a consensus target price of $259.64, suggesting a potential downside of 7.15%. Given Timken’s higher possible upside, equities research analysts clearly believe Timken is more favorable than Roper Technologies.
Roper Technologies beats Timken on 12 of the 17 factors compared between the two stocks.
The Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, belts, chain, couplings and related products and offers a spectrum of power system rebuild and repair services across the world. The Company operates through two segments: Mobile Industries and Process Industries. Its Mobile Industries segment offers a portfolio of bearings, seals, lubrication devices and systems, as well as power transmission components, engineered chain, augers, belts and related products and maintenance services to original equipment manufacturers (OEMs) and end users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment and powersports markets; on-highway vehicles, including passenger cars, light trucks and medium- and heavy-duty trucks; rail cars, and locomotives. Its Process Industries segment supplies industrial bearings and assemblies, power transmission components, and related products and services to OEMs and end users.
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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