Roper Technologies (NYSE: ROP) and Mueller Water Products (NYSE:MWA) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Earnings and Valuation

This table compares Roper Technologies and Mueller Water Products’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Roper Technologies $3.79 billion 7.03 $658.64 million $6.89 37.79
Mueller Water Products $826.00 million 2.35 $123.30 million $0.76 16.16

Roper Technologies has higher revenue and earnings than Mueller Water Products. Mueller Water Products 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 Mueller Water Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roper Technologies 16.17% 14.47% 6.20%
Mueller Water Products 14.93% 15.43% 5.70%

Analyst Ratings

This is a summary of current ratings and target prices for Roper Technologies and Mueller Water Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roper Technologies 0 2 8 0 2.80
Mueller Water Products 0 2 6 0 2.75

Roper Technologies presently has a consensus price target of $251.91, indicating a potential downside of 3.25%. Mueller Water Products has a consensus price target of $13.75, indicating a potential upside of 11.97%. Given Mueller Water Products’ higher probable upside, analysts plainly believe Mueller Water Products is more favorable than Roper Technologies.

Institutional & Insider Ownership

94.4% of Roper Technologies shares are held by institutional investors. Comparatively, 84.0% of Mueller Water Products shares are held by institutional investors. 2.5% of Roper Technologies shares are held by company insiders. Comparatively, 4.3% of Mueller Water Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Roper Technologies has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Mueller Water Products has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Dividends

Roper Technologies pays an annual dividend of $1.40 per share and has a dividend yield of 0.5%. Mueller Water Products pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. Roper Technologies pays out 20.3% of its earnings in the form of a dividend. Mueller Water Products pays out 21.1% 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 increased its dividend for 18 consecutive years and Mueller Water Products has increased its dividend for 2 consecutive years.

Summary

Roper Technologies beats Mueller Water Products on 12 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 Mueller Water Products

Mueller Water Products, Inc. is a manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. The Company operates through three segments: Mueller Co., Anvil and Mueller Technologies. The Mueller Co. segment manufactures valves for water and gas systems, and dry-barrel and wet-barrel fire hydrants. The Anvil segment manufactures and sources a range of products, including a range of fittings, couplings, hangers and related products. The Mueller Technologies segment offers metering systems, leak detection, pipe condition assessment and other products and services for the water infrastructure industry. The Mueller Technologies segment includes Mueller Systems and Echologics businesses. The Company offers a range of water infrastructure, flow control and piping component system products and services in the United States and Canada.

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