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

Earnings and Valuation

This table compares Roper Technologies and American Outdoor Brands Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Roper Technologies $4.18 billion 5.61 $1.41 billion $6.68 34.33
American Outdoor Brands Corp $903.19 million 1.11 $257.73 million $2.21 8.40

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

Profitability

This table compares Roper Technologies and American Outdoor Brands Corp’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 Corp 12.08% 27.58% 14.54%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Roper Technologies and American Outdoor Brands Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roper Technologies 0 2 7 0 2.78
American Outdoor Brands Corp 0 7 1 0 2.13

Roper Technologies currently has a consensus target price of $240.60, suggesting a potential upside of 4.93%. American Outdoor Brands Corp has a consensus target price of $23.38, suggesting a potential upside of 25.88%. Given American Outdoor Brands Corp’s higher probable upside, analysts plainly believe American Outdoor Brands Corp is more favorable than Roper Technologies.

Volatility and Risk

Roper Technologies has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, American Outdoor Brands Corp has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Insider & Institutional Ownership

96.7% of Roper Technologies shares are held by institutional investors. Comparatively, 71.1% of American Outdoor Brands Corp shares are held by institutional investors. 2.5% of Roper Technologies shares are held by insiders. Comparatively, 2.3% of American Outdoor Brands Corp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Roper Technologies pays an annual dividend of $1.40 per share and has a dividend yield of 0.6%. American Outdoor Brands Corp 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 Corp on 13 of the 17 factors compared between the two stocks.

About Roper Technologies

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.

About American Outdoor Brands Corp

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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