Roper Technologies (ROP) versus KLX (KLXI) Financial Comparison

KLX (NASDAQ: KLXI) and Roper Technologies (NYSE:ROP) are both mid-cap aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Insider & Institutional Ownership

94.2% of Roper Technologies shares are held by institutional investors. 1.8% of KLX shares are held by company insiders. Comparatively, 2.5% of Roper Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

KLX has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for KLX and Roper Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KLX 0 2 3 0 2.60
Roper Technologies 0 2 7 0 2.78

KLX presently has a consensus target price of $55.00, suggesting a potential upside of 14.01%. Roper Technologies has a consensus target price of $240.60, suggesting a potential upside of 1.16%. Given KLX’s higher probable upside, equities research analysts plainly believe KLX is more favorable than Roper Technologies.

Profitability

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

Net Margins Return on Equity Return on Assets
KLX 4.83% 4.43% 2.66%
Roper Technologies 16.44% 13.66% 6.07%

Earnings and Valuation

This table compares KLX and Roper Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
KLX $1.60 billion 1.55 $240.70 million $1.50 32.16
Roper Technologies $4.18 billion 5.82 $1.41 billion $6.68 35.60

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

Dividends

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

Summary

Roper Technologies beats KLX on 13 of the 17 factors compared between the two stocks.

About KLX

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

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.

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