Danaher (NYSE: DHR) and Roper Technologies (NYSE:ROP) are both large-cap multi-sector conglomerates companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Insider and Institutional Ownership
77.7% of Danaher shares are held by institutional investors. Comparatively, 94.3% of Roper Technologies shares are held by institutional investors. 11.9% of Danaher shares are held by insiders. Comparatively, 2.5% of Roper Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Danaher has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Earnings and Valuation
This table compares Danaher and Roper Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Danaher||$18.33 billion||3.78||$2.49 billion||$4.03||24.63|
|Roper Technologies||$4.61 billion||6.10||$971.77 million||$9.42||28.99|
Danaher has higher revenue and earnings than Roper Technologies. Danaher is trading at a lower price-to-earnings ratio than Roper Technologies, indicating that it is currently the more affordable of the two stocks.
Danaher pays an annual dividend of $0.64 per share and has a dividend yield of 0.6%. Roper Technologies pays an annual dividend of $1.65 per share and has a dividend yield of 0.6%. Danaher pays out 15.9% of its earnings in the form of a dividend. Roper Technologies pays out 17.5% 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 raised its dividend for 19 consecutive years. Danaher is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and recommmendations for Danaher and Roper Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Danaher presently has a consensus price target of $102.25, indicating a potential upside of 3.03%. Roper Technologies has a consensus price target of $297.64, indicating a potential upside of 8.98%. Given Roper Technologies’ higher probable upside, analysts clearly believe Roper Technologies is more favorable than Danaher.
This table compares Danaher and Roper Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Roper Technologies beats Danaher on 10 of the 17 factors compared between the two stocks.
Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company's Life Sciences segment provides laser scanning, compound, surgical, and other stereo microscopes. This segment also offers filtration, separation, and purification technologies to the biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial sectors. Its Diagnostics segment provides chemistry, immunoassay, microbiology, and automation systems, as well as hematology and flow cytometry products. The company offers analytical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. Its Dental segment provides consumables, equipment, and services to diagnose, treat, and prevent disease and ailments of the teeth, gums, and supporting bone. This segment offers implant systems, dental prosthetics, and associated treatment planning software; orthodontic bracket systems and lab products; endodontic systems and related consumables; restorative materials and instruments; infection prevention products; digital imaging systems and software; air and electric powered handpieces, and consumables; and treatment units. Its Environmental & Applied Solutions segment offers instrumentation, services, and disinfection systems to analyze, treat, and manage water in residential, commercial, industrial, and natural resource applications. This segment also provides equipment, software, services, and consumables for packaging, printing, marking, coding, and traceability applications for consumer, pharmaceutical, and industrial products. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is headquartered in Washington, the District of Columbia.
About Roper Technologies
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.
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