Financial Analysis: Roper Technologies (ROP) & Regal Beloit (RBC)

Roper Technologies (NYSE:ROP) and Regal Beloit (NYSE:RBC) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Roper Technologies and Regal Beloit, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roper Technologies 0 3 5 0 2.63
Regal Beloit 0 6 1 0 2.14



Roper Technologies presently has a consensus target price of $319.43, suggesting a potential downside of 3.05%. Regal Beloit has a consensus target price of $90.00, suggesting a potential upside of 11.46%. Given Regal Beloit’s higher possible upside, analysts clearly believe Regal Beloit is more favorable than Roper Technologies.

Valuation & Earnings

This table compares Roper Technologies and Regal Beloit’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Roper Technologies $5.19 billion 6.58 $944.40 million $11.81 27.90
Regal Beloit $3.65 billion 0.95 $231.20 million $6.00 13.46

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

Dividends

Roper Technologies pays an annual dividend of $1.85 per share and has a dividend yield of 0.6%. Regal Beloit pays an annual dividend of $1.12 per share and has a dividend yield of 1.4%. Roper Technologies pays out 15.7% of its earnings in the form of a dividend. Regal Beloit pays out 18.7% 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 20 consecutive years and Regal Beloit has increased its dividend for 9 consecutive years.

Volatility and Risk

Roper Technologies has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Regal Beloit has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Profitability

This table compares Roper Technologies and Regal Beloit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roper Technologies 18.19% 16.57% 8.23%
Regal Beloit 6.34% 11.18% 5.76%

Insider & Institutional Ownership

92.5% of Roper Technologies shares are owned by institutional investors. Comparatively, 92.9% of Regal Beloit shares are owned by institutional investors. 2.3% of Roper Technologies shares are owned by company insiders. Comparatively, 2.3% of Regal Beloit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Roper Technologies beats Regal Beloit on 12 of the 16 factors compared between the two stocks.

Roper Technologies Company Profile

Roper Technologies, Inc. designs and develops software, and engineered products and solutions. It operates in four segments: RF Technology; Medical & Scientific Imaging; Industrial Technology; and Energy Systems & Controls. The company offers radio frequency identification (RFID) communication technology and software solutions, including application management software, software-as-a-service applications, card systems/integrated security solutions, toll and traffic systems, RFID card readers, and metering and remote monitoring products. It also offers diagnostic and laboratory software solutions; patient positioning devices and related software, 3-D measurement technology, and diagnostic and therapeutic disposable products; non-invasive instruments and video laryngoscopes; and a cloud-based financial analytics and performance software platform, as well as electron filters, charged couple devices, and complementary metal oxide semiconductor cameras, detectors, and related software. In addition, the company offers water meter and automatic meter reading products and systems, fluid handling pumps, materials analysis equipment and consumables, flow measurement and metering equipment, industrial valves and controls, and industrial leak testing products. Further, it provides control systems, fluid properties testing equipment, valves, vibration sensors and controls, and non-destructive inspection and measurement products and solutions. Additionally, the company provides enterprise software and information solutions for government contractors, professional services firms, and other project-based businesses. It serves healthcare, food, energy, water, education, and construction industries, as well as law and professional services firms in the United States and internationally. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. Roper Technologies, Inc. was founded in 1981 and is based in Sarasota, Florida.

Regal Beloit Company Profile

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and power transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions. The Commercial and Industrial Systems segment provides AC and DC motors, and controls; motors, electronic variable speed controls, and blowers; and starters, contactors, relays, variable frequency drives, and integrated solutions of components. This segment also offers precision stator and rotor kits; hazardous duty motors; and electric generators, automatic transfer switches, power generation and distribution switch gears, and components and system controls. It serves commercial heating, ventilation, and air conditioning (HVAC); pool and spa; standby and critical power; and oil and gas system markets. The Climate Solutions segment offers motors, electronic variable speed controls, and blowers, as well as capacitors, precision stators, and rotor sets for residential and light commercial HVAC, water heaters, and commercial refrigeration markets. The Power Transmission Solutions segment provides mounted and unmounted bearings; conveyor products; disc products, patented diaphragms, gear couplings, couplings and transmission elements, gears, grids, jaws, elastomers, and joints; mechanical power transmission drives, components, and bearings; and worm gearing, shaft mount reducer, helical concentric and right angle, bevel and miter gearing, center pivot gearing, and open gearing products. It serves beverage, bulk handling, metals, special machinery, energy, and aerospace and general industrial markets. The company sells its products directly, as well as through independent sales representatives and distributors. Regal Beloit Corporation was founded in 1955 and is based in Beloit, Wisconsin.

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