Financial Contrast: Roper Technologies (NASDAQ:ROP) and Xunlei (NASDAQ:XNET)

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

Insider & Institutional Ownership

93.3% of Roper Technologies shares are owned by institutional investors. Comparatively, 5.1% of Xunlei shares are owned by institutional investors. 0.8% of Roper Technologies shares are owned by company insiders. Comparatively, 21.7% of Xunlei shares are owned by company 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roper Technologies	$7.90 billion	5.95	$1.54 billion	$25.34	18.72
Xunlei	$494.81 million	0.45	$1.05 billion	($1.24)	-2.81

Roper Technologies has higher revenue and earnings than Xunlei. Xunlei 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 Xunlei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roper Technologies	30.71%	11.64%	6.43%
Xunlei	-15.25%	0.62%	0.52%

Analyst Recommendations

This is a summary of current recommendations and price targets for Roper Technologies and Xunlei, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roper Technologies	2	9	7	1	2.37
Xunlei	0	1	0	0	2.00

Roper Technologies presently has a consensus target price of $469.41, indicating a potential downside of 1.07%. Given Roper Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Roper Technologies is more favorable than Xunlei.

Risk & Volatility

Roper Technologies has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Xunlei has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Summary

Roper Technologies beats Xunlei on 13 of the 15 factors compared between the two stocks.

About Roper Technologies

Roper Technologies is a diversified technology company that develops and operates software and technology-enabled businesses. Its products and services support organizations in areas including healthcare, legal services, construction, education, insurance, and energy. The company’s portfolio includes vertical-market software, network software, and technology-enabled products. Its offerings range from specialized business and data-management applications to measurement and analytical products used in industrial and other settings.

About Xunlei

Xunlei Limited is a Chinese technology company that provides cloud-based acceleration, storage and digital content services. Its offerings are designed to help users download, transfer, store and access digital files through internet-connected devices. The company’s products and services have included the Xunlei download platform, membership services, cloud storage through Xunlei CloudDisk and network acceleration solutions. Xunlei has also developed distributed cloud-computing capabilities that use shared network resources, including bandwidth and storage, to support content delivery and other online applications.