Gen Digital (NASDAQ:GEN) & Roper Technologies (NASDAQ:ROP) Critical Analysis

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

Institutional & Insider Ownership

93.3% of Roper Technologies shares are held by institutional investors. Comparatively, 81.4% of Gen Digital shares are held by institutional investors. 0.8% of Roper Technologies shares are held by insiders. Comparatively, 9.7% of Gen Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Roper Technologies and Gen Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roper Technologies	30.24%	11.36%	6.33%
Gen Digital	20.73%	55.93%	8.91%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roper Technologies	$7.90 billion	4.49	$1.54 billion	$24.14	14.85
Gen Digital	$5.00 billion	2.59	$973.00 million	$1.72	12.57

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

Risk and Volatility

Roper Technologies has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Gen Digital has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Dividends

Roper Technologies pays an annual dividend of $3.64 per share and has a dividend yield of 1.0%. Gen Digital pays an annual dividend of $0.50 per share and has a dividend yield of 2.3%. Roper Technologies pays out 15.1% of its earnings in the form of a dividend. Gen Digital pays out 29.1% 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 33 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Roper Technologies and Gen Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roper Technologies	3	9	7	0	2.21
Gen Digital	0	6	1	1	2.38

Roper Technologies currently has a consensus target price of $466.94, indicating a potential upside of 30.23%. Gen Digital has a consensus target price of $30.80, indicating a potential upside of 42.46%. Given Gen Digital’s stronger consensus rating and higher probable upside, analysts plainly believe Gen Digital is more favorable than Roper Technologies.

Summary

Roper Technologies beats Gen Digital on 10 of the 18 factors compared between the two stocks.

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.

About Gen Digital

Gen Digital Inc. engages in the provision of cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers security and performance products under Norton, Avast, Avira, AVG, and CCleaner brands that provide real-time protection and maintenance for PCs, Macs, and mobile devices against malware, viruses, adware, and other online threats. It also provides identity protection solutions, including LifeLock Identity Theft Protection, Avast and AVG Secure Identity, Norton Identity Theft Protection, and Dark Web Monitoring for monitoring of credit reports, financial accounts, the dark web, and social media accounts to help safeguard customers’ personal information. In addition, the company offers Virtual Private Network (VPN) solutions under Norton, Avast and AVG brands to enhance security and online privacy that allows customers to securely transmit and access private information, such as passwords, bank details, and credit card numbers, when using public Wi-Fi on PCs, Macs, and mobile iOS and Android devices; AntiTrack and Secure Browser products which helps to keep personal information and browsing activity anonymous while browsing online; and Privacy Monitor Assistant and BreachGuard products for removing customers’ data from public data broker sites; and ReputationDefender, a white glove service that helps customers manage all aspects of their personal branding online, including search results, social media sites, and overall web presence. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is headquartered in Tempe, Arizona.