Home > Comparison > Industrials > ROP vs PNR
The strategic rivalry between Roper Technologies, Inc. and Pentair plc shapes the current dynamics of the industrial machinery sector. Roper operates as a diversified software and engineered products powerhouse, while Pentair focuses on water solutions with strong consumer and industrial segments. This analysis contrasts their operational models to reveal which company offers a superior risk-adjusted return. Ultimately, I aim to identify the corporate trajectory best suited for a balanced, diversified portfolio.
Table of contents
Companies Overview
Roper Technologies and Pentair stand as influential players in the industrial machinery sector with distinct market footprints.
Roper Technologies, Inc.: Diversified Industrial Software and Solutions Leader
Roper Technologies excels as a diversified industrial machinery firm leveraging software and engineered products. Its revenue stems from cloud-based analytics, management software, and precision instruments across healthcare, insurance, and utilities. In 2026, Roper strategically focuses on expanding its software capabilities and integrating advanced data analytics to solidify its competitive edge.
Pentair plc: Global Water Solutions Provider
Pentair dominates in water treatment and flow technologies, generating revenue through residential and industrial filtration, pumps, and valves. It services pools, agriculture, and municipal water systems worldwide. Pentair’s 2026 strategy centers on innovation in membrane filtration and expanding its sustainable water management portfolio to meet rising global demand.
Strategic Collision: Similarities & Divergences
Both companies operate in industrial machinery but diverge sharply in approach—Roper pursues a software-driven, diversified model while Pentair emphasizes hardware-centric water solutions. Market share battles unfold primarily in the industrial and environmental technology segments. Their distinct investment profiles reflect Roper’s growth through tech integration versus Pentair’s stable, asset-heavy water infrastructure focus.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Roper Technologies, Inc. (ROP) | Pentair plc (PNR) |
|---|---|---|
| Revenue | 7.9B | 4.2B |
| Cost of Revenue | 2.4B | 2.5B |
| Operating Expenses | 3.2B | 833M |
| Gross Profit | 5.5B | 1.7B |
| EBITDA | 3.1B | 944M |
| EBIT | 2.3B | 826M |
| Interest Expense | 325M | 69M |
| Net Income | 1.5B | 654M |
| EPS | 14.31 | 3.99 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison uncovers which company drives superior profitability and operational efficiency in their respective sectors.
Roper Technologies, Inc. Analysis
Roper’s revenue surged from 4.8B in 2021 to 7.9B in 2025, marking strong top-line growth. Net income also climbed from 1.1B to 1.5B over the same period. Its gross margin holds firm at 69.2%, with a robust net margin near 19.4%, reflecting efficient cost control. Despite a slight dip in net margin growth last year, Roper’s scale and operational momentum remain impressive.
Pentair plc Analysis
Pentair’s revenue grew modestly from 3.8B in 2021 to 4.2B in 2025, showing slower expansion. Net income rose steadily from 553M to 654M. Pentair’s gross margin stands at 40.5%, with a net margin of 15.7%, signaling solid but less expansive profitability. The company showed stable margin improvement and EPS growth, though its top-line growth lags compared to Roper’s pace.
Verdict: High Margin Efficiency vs. Steady Growth
Roper dominates in revenue scale and margin efficiency, delivering superior net income and margin percentages. Pentair impresses with consistent margin improvement and earnings growth but at a smaller scale and slower revenue climb. Investors seeking robust profitability and market leverage may favor Roper’s profile, while Pentair appeals for steady, measured growth.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Roper Technologies, Inc. (ROP) | Pentair plc (PNR) |
|---|---|---|
| ROE | 7.73% | 16.90% |
| ROIC | 5.62% | 12.46% |
| P/E | 31.1 | 26.1 |
| P/B | 2.40 | 4.42 |
| Current Ratio | 0.52 | 1.61 |
| Quick Ratio | 0.48 | 0.95 |
| D/E | 0.47 | 0.42 |
| Debt-to-Assets | 26.9% | 23.9% |
| Interest Coverage | 6.88 | 12.36 |
| Asset Turnover | 0.23 | 0.61 |
| Fixed Asset Turnover | 50.37 | 11.08 |
| Payout ratio | 23.1% | 25.1% |
| Dividend yield | 0.74% | 0.96% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, exposing hidden risks and operational strengths that shape investor decisions.
Roper Technologies, Inc.
ROP shows a modest 7.7% ROE and a strong 19.4% net margin, reflecting solid profitability but limited equity efficiency. Its P/E of 31.1 signals a stretched valuation compared to sector norms. Dividend yield remains low at 0.74%, suggesting reinvestment into sustaining growth rather than immediate shareholder returns.
Pentair plc
PNR boasts a robust 16.9% ROE and a healthy 15.7% net margin, marking it as operationally efficient. Its P/E of 26.1 is still elevated but less stretched than ROP’s. Despite a slightly higher dividend yield at 0.96%, significant reinvestment continues to support sustained capital returns and growth.
Balanced Strength vs. Valuation Discipline
Pentair combines superior profitability and efficient capital use with a more reasonable valuation than Roper. Roper’s higher P/E and weaker ROE suggest greater risk relative to reward. Investors seeking operational resilience may favor Pentair’s profile, while those tolerant of valuation stretch might consider Roper’s growth potential.
Which one offers the Superior Shareholder Reward?
I compare Roper Technologies (ROP) and Pentair (PNR) on dividend yield, payout ratio, and buybacks. ROP yields 0.74% with a 23% payout ratio, supported by strong free cash flow coverage (6.3x). PNR offers a higher yield at 0.96%, but with a slightly higher payout ratio near 25% and lower dividend plus capex coverage (3.5x). ROP’s large buyback intensity complements its modest dividend, maximizing shareholder return. Pentair also buys back shares but with less capital efficiency. ROP’s balanced distribution via dividends and aggressive buybacks, backed by superior FCF coverage, promises more sustainable long-term value. I conclude Roper Technologies delivers the superior total shareholder reward in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Roper Technologies, Inc. and Pentair plc, highlighting their strategic strengths and vulnerabilities:
Roper shows strength in discounted cash flow with a score of 4 but struggles with a weak debt-to-equity score of 1, signaling higher leverage risk. Pentair excels in return on equity (4) and return on assets (5), indicating superior operational efficiency and asset use. Both firms share moderate valuations, but Pentair presents a more balanced financial profile, while Roper relies on cash flow advantages offset by leverage concerns.
Bankruptcy Risk: Solvency Showdown
Pentair’s Altman Z-Score of 4.21 places it firmly in the safe zone, signaling robust long-term solvency compared to Roper’s 2.65, which sits in the grey zone and signals moderate bankruptcy risk:
Financial Health: Quality of Operations
Both companies score an 8 on the Piotroski F-Score, indicating very strong financial health. Neither shows red flags in profitability, leverage, liquidity, or operational efficiency:
How are the two companies positioned?
This section dissects the operational DNA of ROP and PNR by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats to reveal which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Roper Technologies, Inc. and Pentair plc diversify their income streams and where their primary sector bets lie:
Roper Technologies pivots heavily on Software and Related Services, with $10.7B in 2024 anchoring its portfolio, despite a historically diversified segment base. Pentair, in contrast, balances revenue across Industrial & Flow Technologies ($1.5B), Pool ($1.4B), and Water Unit ($1.1B), evidencing a broader mix. Roper’s concentration signals strong software ecosystem dominance, while Pentair’s spread reduces concentration risk but may dilute capital allocation efficiency.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Roper Technologies and Pentair plc:
Roper Technologies Strengths
- High net margin of 19.44%
- Favorable debt-to-assets ratio at 26.9%
- Strong interest coverage ratio of 6.96
- Diversified software segments with $10.7B revenue
- Significant US market presence with $6.06B revenue
Pentair Strengths
- Favorable ROE at 16.9% and ROIC at 12.46%
- Strong current ratio at 1.61
- Favorable interest coverage at 11.9
- Diverse industrial and water segments over $4.1B revenue
- Broad global footprint including US, Europe, and developing countries
Roper Technologies Weaknesses
- Low current and quick ratios (0.52 and 0.48) signal liquidity risk
- ROE below WACC at 7.73% vs. 7.27% WACC
- Unfavorable P/E at 31.06
- Low asset turnover of 0.23
- Limited international sales compared to US revenue dominance
Pentair Weaknesses
- Unfavorable P/E of 26.14 and high PB ratio of 4.42
- Quick ratio near 1.0, indicating potential short-term liquidity constraints
- Dividend yield under 1%
- Asset turnover is moderate at 0.61
- Less software innovation exposure compared to Roper
Both companies show solid profitability but differ in capital efficiency and liquidity profiles. Roper excels in software diversification and US market share but faces liquidity constraints. Pentair demonstrates stronger returns and global diversification but carries valuation risks and moderate asset efficiency. These contrasts highlight their distinct strategic focuses in technology versus industrial-water sectors.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat shields long-term profits from competitive erosion. Without it, firms lose pricing power and market share rapidly:
Roper Technologies, Inc.: Diversified Software & Engineered Products Moat
Roper leverages intangible assets with a broad software portfolio and engineered solutions, driving high ROIC and margin stability. Expansion into cloud analytics deepens its moat in 2026.
Pentair plc: Water Solutions Cost Advantage Moat
Pentair’s cost advantage in water treatment and filtration contrasts with Roper’s software focus. It commands steady margins but faces pressure from declining ROIC trends. Growth in developing markets offers upside.
Intangible Assets vs. Cost Efficiency: Moat Strength in Focus
Roper’s expanding intangible asset moat offers deeper competitive defense despite current value destruction. Pentair creates value but with a shrinking ROIC cushion. I see Roper better equipped to protect market share long term.
Which stock offers better returns?
Over the past year, Roper Technologies, Inc. experienced a sharp price decline, while Pentair plc showed steady gains despite recent weakness. Trading volumes reveal contrasting buyer-seller dynamics between the two stocks.
Trend Comparison
Roper Technologies, Inc. shows a bearish trend with a -34.28% price drop over the past 12 months, decelerating after reaching a high of 588.38 and a low of 359.73. Recent months confirm continued downward momentum with an -18.93% decline.
Pentair plc exhibits a bullish trend, rising 20.65% in the past year with lower volatility and a peak price of 112.23. However, recent months reveal a slight deceleration and a -7.17% price dip.
Comparing both, Pentair outperformed Roper significantly over 12 months. Roper’s heavy losses contrast with Pentair’s overall gains, marking Pentair as the stronger performer.
Target Prices
Analysts present a clear consensus on target prices for Roper Technologies and Pentair plc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Roper Technologies, Inc. | 365 | 575 | 475.5 |
| Pentair plc | 90 | 135 | 120 |
The consensus target for Roper Technologies stands about 32% above its current price of 360, signaling strong growth expectations. Pentair’s consensus target exceeds its 97 price by roughly 23%, indicating positive analyst sentiment.
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How do institutions grade them?
Here is a summary of recent institutional grades for Roper Technologies, Inc. and Pentair plc:
Roper Technologies, Inc. Grades
This table shows the latest grades assigned by major financial institutions for Roper Technologies:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Neutral | 2026-01-29 |
| Argus Research | downgrade | Hold | 2026-01-28 |
| Mizuho | maintain | Underperform | 2026-01-28 |
| RBC Capital | maintain | Sector Perform | 2026-01-28 |
| Stifel | downgrade | Hold | 2026-01-28 |
| Citigroup | maintain | Buy | 2026-01-28 |
| JP Morgan | maintain | Underweight | 2026-01-28 |
| Truist Securities | maintain | Buy | 2026-01-28 |
| Barclays | maintain | Underweight | 2026-01-28 |
| Oppenheimer | downgrade | Perform | 2026-01-28 |
Pentair plc Grades
Below are recent grades from recognized analysts for Pentair plc:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | maintain | Outperform | 2026-02-04 |
| Citigroup | maintain | Buy | 2026-02-04 |
| JP Morgan | maintain | Overweight | 2026-01-16 |
| Citigroup | maintain | Buy | 2026-01-12 |
| BNP Paribas Exane | downgrade | Underperform | 2026-01-07 |
| TD Cowen | downgrade | Sell | 2026-01-05 |
| Jefferies | upgrade | Buy | 2025-12-10 |
| Barclays | downgrade | Equal Weight | 2025-12-04 |
| Oppenheimer | maintain | Outperform | 2025-11-20 |
| RBC Capital | maintain | Outperform | 2025-10-22 |
Which company has the best grades?
Pentair plc holds a stronger consensus with multiple “Outperform” and “Buy” ratings from top firms. Roper Technologies shows more mixed signals including several “Hold” and “Underperform” grades. Investors may interpret Pentair’s superior grades as a vote of confidence in its outlook compared to Roper.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Roper Technologies, Inc. (ROP)
- Diversified software and engineered products face intense industrial competition and technological disruption risks.
Pentair plc (PNR)
- Focused on water solutions, PNR faces competitive pressure from innovation and regulatory-driven market shifts.
2. Capital Structure & Debt
Roper Technologies, Inc. (ROP)
- Moderate debt with a favorable debt-to-assets ratio (26.9%), but weak liquidity ratios pose risks.
Pentair plc (PNR)
- Slightly lower leverage (23.9%), stronger current ratio (1.61) reduces short-term solvency risk.
3. Stock Volatility
Roper Technologies, Inc. (ROP)
- Beta near market average (0.93) suggests moderate price volatility.
Pentair plc (PNR)
- Higher beta (1.22) indicates greater sensitivity to market swings and potential higher volatility.
4. Regulatory & Legal
Roper Technologies, Inc. (ROP)
- Exposure to US industrial regulations and software compliance standards.
Pentair plc (PNR)
- Subject to EU and global water treatment regulations, with potential Brexit-related uncertainties.
5. Supply Chain & Operations
Roper Technologies, Inc. (ROP)
- Complex global supply chain for software and hardware components vulnerable to disruption.
Pentair plc (PNR)
- Supply chain depends heavily on raw materials for filtration products, sensitive to commodity price swings.
6. ESG & Climate Transition
Roper Technologies, Inc. (ROP)
- Faces pressure to innovate sustainable engineered products and reduce carbon footprint.
Pentair plc (PNR)
- Water solutions align with climate transition demands but must manage resource usage and emissions.
7. Geopolitical Exposure
Roper Technologies, Inc. (ROP)
- Primarily US-based, risks from trade policies and domestic political shifts.
Pentair plc (PNR)
- UK headquarters expose PNR to Brexit aftermath and broader EU trade uncertainties.
Which company shows a better risk-adjusted profile?
Pentair faces less liquidity risk, boasts stronger profitability metrics, and carries a safer Altman Z-Score, reflecting superior financial health. Roper’s weak liquidity ratios and moderate Altman Z-Score highlight balance sheet vulnerabilities. However, Roper’s diversified product base partially offsets competitive risks. The most impactful risk for Roper is its weak liquidity amid capital demands. For Pentair, regulatory exposure and geopolitical uncertainty remain key concerns. Pentair’s favorable debt management and strong operational metrics grant it a better risk-adjusted profile in 2026.
Final Verdict: Which stock to choose?
Roper Technologies, Inc. (ROP) excels as a cash-generating engine with robust margins and a solid growth trajectory in revenue and earnings. Its point of vigilance is a notably weak liquidity position, which could pressure short-term operations. ROP suits an aggressive growth portfolio willing to tolerate cyclical swings.
Pentair plc (PNR) boasts a strategic moat grounded in efficient capital use and a strong balance sheet. Its superior return on equity and safer liquidity profile offer stability compared to ROP. PNR fits a GARP (Growth at a Reasonable Price) portfolio seeking steady value creation with less volatility.
If you prioritize aggressive expansion and can manage liquidity risks, ROP’s improving profitability and cash flow growth make it compelling. However, if you seek better stability and consistent capital efficiency, PNR outshines with its durable moat and conservative financial footing. Both present analytical scenarios for distinct investor profiles rather than one-size-fits-all answers.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Roper Technologies, Inc. and Pentair plc to enhance your investment decisions:
