Contrasting Roper Technologies (NASDAQ:ROP) and Adeia (NASDAQ:ADEA)

Adeia (NASDAQ:ADEA) and Roper Technologies (NASDAQ:ROP) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adeia	0	2	4	0	2.67
Roper Technologies	3	9	7	0	2.21

Adeia currently has a consensus price target of $37.60, suggesting a potential upside of 77.27%. Roper Technologies has a consensus price target of $460.33, suggesting a potential upside of 5.07%. Given Adeia’s stronger consensus rating and higher possible upside, research analysts plainly believe Adeia is more favorable than Roper Technologies.

Institutional and Insider Ownership

97.4% of Adeia shares are held by institutional investors. Comparatively, 93.3% of Roper Technologies shares are held by institutional investors. 2.0% of Adeia shares are held by insiders. Comparatively, 0.8% of Roper Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Adeia pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Roper Technologies pays an annual dividend of $3.64 per share and has a dividend yield of 0.8%. Adeia pays out 18.5% of its earnings in the form of a dividend. Roper Technologies pays out 14.4% 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 33 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adeia	26.05%	39.26%	17.50%
Roper Technologies	30.71%	11.64%	6.43%

Valuation and Earnings

This table compares Adeia and Roper Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adeia	$470.87 million	4.97	$111.07 million	$1.08	19.64
Roper Technologies	$8.43 billion	5.14	$1.54 billion	$25.34	17.29

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

Risk and Volatility

Adeia has a beta of 1.35, meaning that its share price is 35% 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.

Summary

Adeia beats Roper Technologies on 9 of the 17 factors compared between the two stocks.

About Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, 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.