Strategy Inc (MSTR) vs Roper Technologies, Inc. (ROP)

Strategy Inc and Roper Technologies, Inc. are both Software Application companies. Strategy Inc is the larger, with a market value of $62.2B against $36.0B — 1.7× the size. Strategy Inc has negative trailing earnings, so its P/E is not meaningful; Roper Technologies, Inc. trades at 14.8×. Roper Technologies, Inc. grew revenue faster over the last twelve months: 10.9% against 7.79%. Roper Technologies, Inc. has the higher net margin (30.2% vs −6,294.0%) and the higher return on invested capital (4.88% vs −64.7%). Across the 19 metrics below, Roper Technologies, Inc. leads on 15 and Strategy Inc on 4.

Valuation

Metric MSTR ROP Software Application median
P/E n/m 14.80 24.79
P/S 112.20 4.35 2.67
P/B 1.81 1.93 3.01
Price to free cash flow n/m 14.06 16.59
EV/EBITDA n/m 14.44 14.40
EV/Sales 120.75 5.67 2.62
Earnings yield (60.73%) 6.75% 0.00%
Free cash flow yield (38.82%) 7.11% 1.91%

Profitability

Metric MSTR ROP Software Application median
Gross margin 67.60% 69.53% 67.03%
Operating margin (7,295.38%) 27.97% 0.00%
Net margin (6,293.95%) 30.24% 0.00%
Free cash flow margin (4,356.09%) 30.93% 4.32%
Return on equity (80.05%) 13.07% 0.00%
Return on assets (53.46%) 7.32% 0.00%
Return on invested capital (64.65%) 4.88% 0.00%

Growth

Metric MSTR ROP Software Application median
Revenue growth (TTM) 7.79% 10.88% 12.40%
EPS growth (last fiscal year) (151.32%) (1.05%) —
Revenue growth, 5-year CAGR (0.15%) 14.46% 13.72%
Net income growth, 5-year CAGR 0.00% 10.10% 0.00%

Health

Metric MSTR ROP Software Application median
Debt to equity 0.22 0.61 0.02
Current ratio 5.39 0.55 1.55
Net debt to EBITDA (1.09) 2.86 0.06

Dividend

Metric MSTR ROP Software Application median
Dividend yield — 0.51% 1.25%
Payout ratio 0.00 0.24 0.00

Size

Metric MSTR ROP Software Application median
Market cap 62.24b 36.00b 396.11m

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