Roper Technologies (NASDAQ:ROP – Get Free Report) and SmartRent (NYSE:SMRT – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Profitability
This table compares Roper Technologies and SmartRent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roper Technologies | 30.24% | 11.36% | 6.33% |
| SmartRent | -12.97% | -8.50% | -6.27% |
Valuation & Earnings
This table compares Roper Technologies and SmartRent”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roper Technologies | $7.90 billion | 4.80 | $1.54 billion | $24.14 | 15.89 |
| SmartRent | $152.33 million | 1.45 | -$60.56 million | ($0.10) | -11.55 |
Roper Technologies has higher revenue and earnings than SmartRent. SmartRent is trading at a lower price-to-earnings ratio than Roper Technologies, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Roper Technologies has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, SmartRent has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.
Insider & Institutional Ownership
93.3% of Roper Technologies shares are owned by institutional investors. Comparatively, 59.4% of SmartRent shares are owned by institutional investors. 0.8% of Roper Technologies shares are owned by insiders. Comparatively, 2.3% of SmartRent shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations for Roper Technologies and SmartRent, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roper Technologies | 3 | 9 | 7 | 0 | 2.21 |
| SmartRent | 1 | 2 | 1 | 0 | 2.00 |
Roper Technologies currently has a consensus target price of $466.94, indicating a potential upside of 21.76%. SmartRent has a consensus target price of $1.48, indicating a potential upside of 27.71%. Given SmartRent’s higher probable upside, analysts plainly believe SmartRent is more favorable than Roper Technologies.
Summary
Roper Technologies beats SmartRent on 10 of the 13 factors compared between the two stocks.
About Roper Technologies
Roper Technologies, Inc. designs and develops software, and technology enabled products and solutions. It operates through three segments: Application Software, Network Software, and Technology Enabled Products. The Application Software segment offers management, campus solutions, diagnostic and laboratory information management, enterprise software and information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations. The Network Software segment provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; data analytics and information; and pharmacy software solutions. The Technology Enabled Products segment offers ultrasound accessories; dispensers and metering pumps; wireless sensor network and solutions automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; RFID card readers; and medical devices. It distributes and sells its products through direct sales, manufacturers’ representatives, resellers, and distributors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. The company was incorporated in 1981 and is based in Sarasota, Florida.
About SmartRent
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.
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