Critical Review: Barnes Group (B) and Roper Technologies (ROP)
Barnes Group (NYSE: B) and Roper Technologies (NYSE:ROP) are both mid-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
This is a breakdown of recent ratings for Barnes Group and Roper Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Barnes Group currently has a consensus target price of $65.60, indicating a potential upside of 1.66%. Roper Technologies has a consensus target price of $251.91, indicating a potential downside of 3.29%. Given Barnes Group’s higher possible upside, research analysts plainly believe Barnes Group is more favorable than Roper Technologies.
Earnings & Valuation
This table compares Barnes Group and Roper Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Barnes Group||$1.23 billion||2.81||$135.60 million||$2.85||22.64|
|Roper Technologies||$3.79 billion||7.04||$658.64 million||$6.88||37.86|
Roper Technologies has higher revenue and earnings than Barnes Group. Barnes Group is trading at a lower price-to-earnings ratio than Roper Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
86.4% of Barnes Group shares are held by institutional investors. Comparatively, 94.4% of Roper Technologies shares are held by institutional investors. 8.5% of Barnes Group shares are held by insiders. Comparatively, 2.5% of Roper Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Roper Technologies pays an annual dividend of $1.40 per share and has a dividend yield of 0.5%. Barnes Group pays out 19.6% of its earnings in the form of a dividend. Roper Technologies pays out 20.3% 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. Barnes Group has increased its dividend for 18 consecutive years and Roper Technologies has increased its dividend for 4 consecutive years. Barnes Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Barnes Group and Roper Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Barnes Group has a beta of 1.37, suggesting that its share price is 37% 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.
Roper Technologies beats Barnes Group on 10 of the 17 factors compared between the two stocks.
About Barnes Group
Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.
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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