Roper Technologies (NYSE: ROP) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Roper Technologies and American Outdoor Brands Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roper Technologies 16.44% 13.66% 6.07%
American Outdoor Brands Corporation 10.96% 27.91% 14.47%

Valuation and Earnings

This table compares Roper Technologies and American Outdoor Brands Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Roper Technologies $4.18 billion 5.82 $1.41 billion $6.68 35.60
American Outdoor Brands Corporation $825.26 million 0.93 $204.58 million $1.60 8.91

Roper Technologies has higher revenue and earnings than American Outdoor Brands Corporation. American Outdoor Brands 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 Recommendations

This is a breakdown of recent ratings and target prices for Roper Technologies and American Outdoor Brands Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roper Technologies 0 2 7 0 2.78
American Outdoor Brands Corporation 0 6 4 0 2.40

Roper Technologies currently has a consensus target price of $240.60, suggesting a potential upside of 1.16%. American Outdoor Brands Corporation has a consensus target price of $19.00, suggesting a potential upside of 33.24%. Given American Outdoor Brands Corporation’s higher possible upside, analysts plainly believe American Outdoor Brands Corporation is more favorable than Roper Technologies.

Institutional & Insider Ownership

94.4% of Roper Technologies shares are owned by institutional investors. Comparatively, 72.6% of American Outdoor Brands Corporation shares are owned by institutional investors. 2.5% of Roper Technologies shares are owned by company insiders. Comparatively, 2.3% of American Outdoor Brands Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Roper Technologies has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Dividends

Roper Technologies pays an annual dividend of $1.40 per share and has a dividend yield of 0.6%. American Outdoor Brands Corporation does not pay a dividend. Roper Technologies pays out 21.0% of its earnings in the form of a dividend. Roper Technologies has raised its dividend for 18 consecutive years.

Summary

Roper Technologies beats American Outdoor Brands Corporation on 13 of the 17 factors compared between the two stocks.

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.

American Outdoor Brands Corporation Company Profile

American Outdoor Brands Corporation, formerly Smith & Wesson Holding Corporation, is a manufacturer of firearms and a provider of accessory products for the shooting, hunting and outdoor enthusiast. The Company operates through two segments. The Firearms segment manufactures handgun and long gun products sold under the Smith & Wesson, M&P and Thompson/Center Arms brands, as well as providing forging, machining and precision plastic injection molding services. The Outdoor Products & Accessories segment provides shooting, hunting and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems and tactical lighting products. Brands in Outdoor Products & Accessories include Crimson Trace, Caldwell Shooting Supplies, Wheeler Engineering, Lockdown Vault Accessories, BOG POD and Golden Rod Moisture Control, as well as knives and specialty tools under Schrade, Old Timer, Uncle Henry and Imperial.

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