Critical Review: Roper Technologies (NASDAQ:ROP) & SmartRent (NYSE:SMRT)

SmartRent (NYSE:SMRT – Get Free Report) and Roper Technologies (NASDAQ:ROP – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for SmartRent and Roper Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SmartRent 1 2 1 0 2.00
Roper Technologies 3 9 7 0 2.21

SmartRent currently has a consensus price target of $1.48, suggesting a potential upside of 18.47%. Roper Technologies has a consensus price target of $460.33, suggesting a potential upside of 5.07%. Given SmartRent’s higher probable upside, analysts plainly believe SmartRent is more favorable than Roper Technologies.

Institutional & Insider Ownership

59.4% of SmartRent shares are held by institutional investors. Comparatively, 93.3% of Roper Technologies shares are held by institutional investors. 2.3% of SmartRent 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

SmartRent has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
SmartRent -12.97% -8.50% -6.27%
Roper Technologies 30.71% 11.64% 6.43%

Valuation and Earnings

This table compares SmartRent 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
SmartRent $152.33 million 1.57 -$60.56 million ($0.10) -12.45
Roper Technologies $7.90 billion 5.48 $1.54 billion $25.34 17.29

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.

Summary

Roper Technologies beats SmartRent on 11 of the 14 factors compared between the two stocks.

About SmartRent

(Get Free Report)

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.

About Roper Technologies

(Get Free Report)

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.

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