Head to Head Review: Esterline (ESL) versus Roper Technologies (ROP)

Esterline (NYSE: ESL) and Roper Technologies (NYSE:ROP) are both aerospace companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Analyst Recommendations

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This is a summary of current ratings and recommmendations for Esterline and Roper Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Esterline 4 5 0 0 1.56
Roper Technologies 0 3 7 0 2.70

Esterline presently has a consensus target price of $79.25, suggesting a potential upside of 4.83%. Roper Technologies has a consensus target price of $297.64, suggesting a potential upside of 7.55%. Given Roper Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Roper Technologies is more favorable than Esterline.

Risk and Volatility

Esterline has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Esterline 3.31% 6.91% 3.97%
Roper Technologies 21.09% 15.28% 6.84%

Institutional & Insider Ownership

95.1% of Esterline shares are held by institutional investors. Comparatively, 94.3% of Roper Technologies shares are held by institutional investors. 1.3% of Esterline 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Roper Technologies pays an annual dividend of $1.65 per share and has a dividend yield of 0.6%. Esterline does not pay a dividend. Roper Technologies pays out 17.5% of its earnings in the form of a dividend. Roper Technologies has increased its dividend for 19 consecutive years.

Valuation and Earnings

This table compares Esterline and Roper Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Esterline $2.00 billion 1.12 $111.55 million $4.36 17.34
Roper Technologies $4.61 billion 6.18 $971.77 million $9.42 29.38

Roper Technologies has higher revenue and earnings than Esterline. Esterline 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 Esterline on 14 of the 17 factors compared between the two stocks.

Esterline Company Profile

Esterline Technologies Corporation designs, manufactures, and markets engineered products and systems primarily for aerospace and defense customers in the United States and internationally. It operates through three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials. The Avionics & Controls segment offers global positioning systems, head-up displays, enhanced vision systems, and electronic flight management systems for control and display applications; lighted push-button and rotary switches, keyboards, lighted indicators, panels, and displays; and control sticks, grips, wheels, and switching systems. This segment also provides military personal communication equipment, primarily headsets, handsets, and field communications equipment; keyboards, keypads, and input devices that integrate cursor control devices, barcode scanners, displays, video, and voice activation and touch screens; and instruments for point-of-use and point-of-care diagnostics. The Sensors & Systems segment develops and manufactures high-precision temperature, pressure, and speed sensors; electrical interconnection systems; electrical power switching, control and data communication devices, and other related systems; and planet probe interconnectors, launcher umbilicals, and composite connectors. The Advanced Materials segment develops and manufactures silicone rubber and other elastomer products, such as clamping devices, thermal fire barrier insulation products, sealing systems, and tubing and coverings; lightweight metallic insulation systems; thermal protection products; and molded fiber cartridge cases, mortar increments, igniter tubes, and other combustible ordnance components. The company markets and sells its products through direct internal sales, manufacturer representatives, and distributors. Esterline Technologies Corporation was founded in 1967 and is headquartered in Bellevue, Washington.

Roper Technologies Company Profile

Roper Technologies, Inc. designs and develops software, and engineered products and solutions. It operates in four segments: RF Technology; Medical & Scientific Imaging; Industrial Technology; and Energy Systems & Controls. The company offers radio frequency identification (RFID) communication technology and software solutions, including application management software, software-as-a-service applications, card systems/integrated security solutions, toll and traffic systems, RFID card readers, and metering and remote monitoring products. It also offers diagnostic and laboratory software solutions; patient positioning devices and related software, 3-D measurement technology, and diagnostic and therapeutic disposable products; non-invasive instruments and video laryngoscopes; and a cloud-based financial analytics and performance software platform, as well as electron filters, charged couple devices, and complementary metal oxide semiconductor cameras, detectors, and related software. In addition, the company offers water meter and automatic meter reading products and systems, fluid handling pumps, materials analysis equipment and consumables, flow measurement and metering equipment, industrial valves and controls, and industrial leak testing products. Further, it provides control systems, fluid properties testing equipment, valves, vibration sensors and controls, and non-destructive inspection and measurement products and solutions. Additionally, the company provides enterprise software and information solutions for government contractors, professional services firms, and other project-based businesses. It serves healthcare, food, energy, water, education, and construction industries, as well as law and professional services firms in the United States and internationally. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. Roper Technologies, Inc. was founded in 1981 and is based in Sarasota, Florida.

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