Head to Head Contrast: AppLovin (NASDAQ:APP) & Roper Technologies (NASDAQ:ROP)

AppLovin (NASDAQ:APP) and Roper Technologies (NASDAQ:ROP) are both large-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

41.9% of AppLovin shares are held by institutional investors. Comparatively, 93.3% of Roper Technologies shares are held by institutional investors. 12.8% of AppLovin shares are held by company insiders. Comparatively, 0.8% of Roper Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for AppLovin and Roper Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppLovin	0	8	17	3	2.82
Roper Technologies	2	9	7	1	2.37

AppLovin currently has a consensus target price of $491.64, suggesting a potential upside of 115.16%. Roper Technologies has a consensus target price of $469.41, suggesting a potential upside of 0.60%. Given AppLovin’s stronger consensus rating and higher probable upside, equities analysts clearly believe AppLovin is more favorable than Roper Technologies.

Profitability

This table compares AppLovin and Roper Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AppLovin	64.58%	193.10%	59.63%
Roper Technologies	30.71%	11.64%	6.43%

Earnings & Valuation

This table compares AppLovin and Roper Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppLovin	$5.48 billion	13.95	$3.33 billion	$13.01	17.56
Roper Technologies	$7.90 billion	5.84	$1.54 billion	$25.34	18.41

AppLovin has higher earnings, but lower revenue than Roper Technologies. AppLovin 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 & Volatility

AppLovin has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Summary

AppLovin beats Roper Technologies on 11 of the 15 factors compared between the two stocks.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.

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.