In the rapidly evolving landscape of technology and industrial services, Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM) stand out as formidable players. Roper, rooted in industrial machinery, is renowned for its innovative engineered solutions, while EPAM excels in digital platform engineering and software development. Both companies are positioned within sectors that increasingly overlap in terms of technological innovation and operational efficiency. In this article, I will explore which of these two companies offers the most compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Roper Technologies, Inc. Overview
Roper Technologies, Inc. is a diversified technology company that specializes in designing and developing engineered products and software solutions across various sectors, including industrial machinery, healthcare, and financial services. Roper’s mission is to leverage technology to improve operational efficiency and deliver innovative solutions to its customers. With a market capitalization of approximately $48B and a workforce of 18,200 employees, Roper has established itself as a key player in the industrial sector, providing a broad range of products, from precision instruments to cloud-based software. The company’s commitment to technology and innovation positions it strategically for growth in the evolving industrial landscape.
EPAM Systems, Inc. Overview
EPAM Systems, Inc. is a leading provider of digital platform engineering and software development services. Founded in 1993, the company operates within the information technology services industry, offering a comprehensive suite of engineering and consulting solutions. EPAM’s mission is to empower businesses through innovative technology, focusing on sectors like financial services, healthcare, and consumer products. With a market capitalization of around $10B and a workforce of 61,200 employees, EPAM has built a strong reputation for its expertise in digital transformation and smart automation, making it a vital partner for companies looking to enhance their software capabilities.
Key similarities and differences
Both Roper Technologies and EPAM Systems focus on leveraging technology to deliver innovative solutions, albeit in different sectors. Roper operates primarily in the industrial machinery space, offering engineered products and software, while EPAM specializes in software development and digital platform engineering services. This distinction underscores their unique business models, positioning them to serve distinct market needs effectively.
Income Statement Comparison
The following table provides a comparative analysis of the income statements for Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM) for the most recent fiscal year, 2024.
| Metric | Roper Technologies, Inc. (ROP) | EPAM Systems, Inc. (EPAM) |
|---|---|---|
| Market Cap | 48.03B | 10.33B |
| Revenue | 7.04B | 4.73B |
| EBITDA | 3.04B | 671.69M |
| EBIT | 2.23B | 544.58M |
| Net Income | 1.55B | 454.53M |
| EPS | 14.47 | 7.93 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, ROP displayed robust revenue growth, increasing to 7.04B from 6.18B the previous year, marking an upward trend. Conversely, EPAM’s revenue increased modestly to 4.73B from 4.69B, indicating stabilization. ROP’s net income also rose to 1.55B, reflecting improved operational efficiency, while EPAM’s net income remained relatively stable at 454.53M. ROP’s EBITDA margin improved, suggesting effective cost management, whereas EPAM’s margins showed little change. Overall, ROP’s stronger growth trajectory positions it favorably compared to EPAM, although both companies remain strong contenders in their respective sectors.
Financial Ratios Comparison
The following table presents a comparison of key financial ratios for Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM) based on their most recent fiscal year data.
| Metric | ROP | EPAM |
|---|---|---|
| ROE | 8.21% | 12.52% |
| ROIC | 5.50% | 10.67% |
| P/E | 35.94 | 29.47 |
| P/B | 2.95 | 3.69 |
| Current Ratio | 0.40 | 2.96 |
| Quick Ratio | 0.37 | 2.96 |
| D/E | 0.41 | 0.05 |
| Debt-to-Assets | 24.48% | 3.94% |
| Interest Coverage | 7.70 | N/A |
| Asset Turnover | 0.22 | 0.99 |
| Fixed Asset Turnover | 47.02 | 14.07 |
| Payout ratio | 20.78% | 0% |
| Dividend yield | 0.58% | 0% |
Interpretation of Financial Ratios
In comparing ROP and EPAM, both companies exhibit strengths and weaknesses. ROP has a solid return on equity (ROE) but struggles with liquidity, as indicated by its low current and quick ratios. EPAM, with a significantly higher ROE and lower debt levels, showcases better financial health and operational efficiency. However, its lack of dividends may concern income-focused investors. Overall, EPAM appears to present a more favorable investment profile with less risk in terms of leverage.
Dividend and Shareholder Returns
Roper Technologies (ROP) offers a dividend with a payout ratio of approximately 21%, yielding around 0.58%. The company has a consistent dividend per share trend, supported by free cash flow, indicating a sustainable distribution approach. Conversely, EPAM Systems (EPAM) does not pay dividends, favoring reinvestment for growth, evidenced by its robust cash position. Despite the lack of dividends, EPAM engages in share buybacks, which can enhance shareholder value. Overall, ROP’s strategy appears more aligned with steady returns, while EPAM’s growth focus suggests potential long-term value creation.
Strategic Positioning
Roper Technologies, Inc. (ROP) holds a significant market share in the industrial machinery sector, leveraging its diverse product offerings to mitigate competitive pressure. Meanwhile, EPAM Systems, Inc. (EPAM) stands out in the information technology services space, facing technological disruptions but maintaining strong growth through innovative solutions. Both companies are strategically positioned to capitalize on their respective market dynamics while navigating evolving industry challenges.
Stock Comparison
In this section, I will analyze the stock price movements and trading dynamics of Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM) over the past year, highlighting key trends and price fluctuations that may impact investor decisions.
Trend Analysis
Roper Technologies, Inc. (ROP) Over the past year, ROP has experienced a price change of -14.69%, indicating a bearish trend. The stock has shown notable volatility with a standard deviation of 30.17, suggesting significant price fluctuations. The highest price reached was $588.38, while the lowest was $443.75. Recently, the trend has continued to decline with a price change of -12.94% from September 14, 2025, to November 30, 2025, and has demonstrated deceleration in its downward movement.
EPAM Systems, Inc. (EPAM) In contrast, EPAM has seen a more pronounced bearish trend over the past year, with a price change of -35.26%. The stock is also characterized by high volatility, with a standard deviation of 45.99. The highest price noted was $311.98, and the lowest was $142.38. However, in the recent period from September 14, 2025, to November 30, 2025, EPAM’s stock has experienced a positive shift, with a price increase of 19.8%, suggesting acceleration in this recent upward trend.
Analyst Opinions
Recent analyst recommendations for Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM) are both rated as “B+”. Analysts commend their strong discounted cash flow scores and solid return on assets, indicating robust financial health. However, concerns about their debt-to-equity ratios and price-to-earnings metrics suggest caution. Notable analysts, including those from top investment firms, support a consensus “buy” rating for both companies in 2025, reflecting confidence in their growth potential despite market challenges.
Stock Grades
In the current market landscape, understanding stock grades is essential for making informed investment decisions. Here are the most recent grades for Roper Technologies, Inc. and EPAM Systems, Inc.
Roper Technologies, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | downgrade | Sector Perform | 2025-10-27 |
| Barclays | maintain | Underweight | 2025-10-27 |
| TD Cowen | maintain | Buy | 2025-10-24 |
| Raymond James | maintain | Strong Buy | 2025-10-24 |
| RBC Capital | maintain | Outperform | 2025-10-24 |
| Jefferies | maintain | Buy | 2025-10-24 |
| Mizuho | maintain | Neutral | 2025-10-17 |
| JP Morgan | downgrade | Underweight | 2025-10-15 |
| Barclays | maintain | Underweight | 2025-10-01 |
| Truist Securities | maintain | Buy | 2025-07-22 |
EPAM Systems, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-11 |
| JP Morgan | maintain | Overweight | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-09 |
| JP Morgan | maintain | Overweight | 2025-08-20 |
| Barclays | maintain | Overweight | 2025-05-12 |
| Needham | maintain | Buy | 2025-05-09 |
| Guggenheim | maintain | Buy | 2025-05-09 |
| Piper Sandler | maintain | Neutral | 2025-05-09 |
| Morgan Stanley | maintain | Equal Weight | 2025-05-09 |
| Stifel | maintain | Buy | 2025-05-02 |
In summary, Roper Technologies is experiencing mixed sentiments with some downgrades, particularly from RBC Capital and JP Morgan, while maintaining strong grades from others like Raymond James. Conversely, EPAM Systems continues to hold stable ratings, with several firms maintaining their grades, indicating a generally positive outlook.
Target Prices
The following target prices represent the consensus from analysts for Roper Technologies, Inc. and EPAM Systems, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Roper Technologies, Inc. | 650 | 506 | 574.2 |
| EPAM Systems, Inc. | 185 | 175 | 180 |
For Roper Technologies, the consensus target price of 574.2 suggests potential upside compared to its current price of 446.22. Similarly, EPAM Systems has a consensus target price of 180, which indicates a moderate expectation of growth from its current price of 187.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM) based on the latest available data.
| Criterion | Roper Technologies (ROP) | EPAM Systems (EPAM) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (22% margin) | Moderate (9.6% margin) |
| Innovation | High | Strong |
| Global presence | Extensive | Growing |
| Market Share | Significant | Emerging |
| Debt level | Moderate (24% of assets) | Very Low (3.4% of assets) |
Key takeaways indicate that ROP demonstrates strong profitability and innovation, but has a higher debt level. Meanwhile, EPAM is expanding its global presence with minimal debt, though it trails ROP in profitability.
Risk Analysis
In this section, I present a comparative analysis of the risks associated with Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM).
| Metric | Roper Technologies, Inc. | EPAM Systems, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks, particularly EPAM, which operates in the volatile tech sector. ROP’s diversified industrial portfolio mitigates some risks, while EPAM’s international exposure heightens its geopolitical vulnerabilities.
Which one to choose?
When comparing Roper Technologies, Inc. (ROP) and EPAM Systems, Inc. (EPAM), both companies exhibit solid fundamentals with a B+ rating. ROP has a higher net profit margin of 22% compared to EPAM’s 9.6%, suggesting more efficient profitability. ROP’s relatively stable price-to-earnings (P/E) ratio of around 36 contrasts with EPAM’s higher P/E of approximately 41, indicating that ROP may offer better value for growth-oriented investors.
However, both stocks are currently in a bearish trend, with ROP down 14.7% and EPAM down 35.3% over the past year. ROP’s stronger cash flow metrics and lower debt levels present a more secure investment profile, while EPAM’s growth potential may appeal to aggressive investors despite recent volatility.
Investors focused on stability may prefer ROP, while those seeking higher growth potential might opt for EPAM, keeping in mind that both face risks related to market dependence and competition.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Roper Technologies, Inc. and EPAM Systems, Inc. to enhance your investment decisions:
