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ROP vs WTS
Which Stock Would AI Choose? Roper Technologies (ROP) vs. Watts Water Technologies (WTS) Stock Comparison
Key Takeaways
- Roper Technologies (ROP) is a diversified vertical-software and technology-enabled products company, while Watts Water Technologies (WTS) is a manufacturer of water-flow, quality, and control solutions.
- Both names posted strong recent quarterly results, but their growth engines differ sharply: ROP is driven by recurring software revenue and AI adoption, while WTS is levered to data center cooling demand.
- ROP raised its full-year earnings outlook and stepped up buybacks, while WTS raised its full-year sales outlook and increased its dividend by 21%.
- WTS has delivered stronger relative share-price momentum over the past year, though margin pressure from tariffs and inflation remains a watch item.
- Risk profiles diverge: ROP carries acquisition-integration and valuation considerations, while WTS faces cyclical construction exposure and cost headwinds.
Introduction
Investors comparing ROP and WTS are weighing two distinct approaches to industrial and technology leadership. Roper Technologies is a software-centric compounder with a long record of acquisitions and recurring revenue, whereas Watts Water Technologies is a specialized manufacturer benefiting from a structural shift in water and cooling infrastructure. This stock comparison is most relevant for investors and traders assessing market positioning, relative performance, and how each company converts its respective growth drivers into earnings and cash flow in the current market environment.
ROP Overview and Recent Performance
Roper Technologies (ROP) designs and develops vertical software and technology-enabled products for defensible niche markets, spanning application software, network software, and technology-enabled products. It is a constituent of the Nasdaq 100, S&P 500, and Fortune 1000, with roughly 78% of revenue tied to software. In its most recent quarter, total revenue rose 11% to about $2.1 billion, with 6% organic growth, while adjusted diluted earnings per share (EPS) increased 8% year over year.
Recent weeks have featured a clearer focus on capital deployment and artificial intelligence (AI). The company repurchased approximately 6 million shares for $2.2 billion since November, including $1.5 billion in a single quarter, and its board authorized an additional $3 billion in buybacks. Management raised full-year adjusted EPS guidance to a range of $21.80 to $22.05, citing resilient demand for mission-critical solutions. AI product launches across several portfolio businesses and strong recurring-revenue retention in the mid-90s have supported sentiment, even as margins faced modest pressure in the technology-enabled products segment.
WTS Overview and Recent Performance
Watts Water Technologies (WTS) is a global manufacturer of products that control the efficiency, safety, and quality of water across residential, commercial, and institutional applications. Approximately 60% of its sales are tied to repair and replacement activity, providing a relatively consistent revenue base. In its most recent quarter, net sales rose about 18.6% year over year to roughly $763 million, with 12% organic growth, while adjusted EPS increased 18%.
Recent market activity has centered on the company's accelerating data center opportunity. Data center sales more than tripled year over year in the latest quarter and represented roughly 8% of total sales, prompting management to raise its full-year sales growth outlook and expand its estimated served addressable market to about $2 billion. The company also increased its quarterly dividend by 21%. Offsetting the top-line momentum, gross and operating margins have been pressured by acquisition dilution, inflation, and tariffs, and free cash flow has softened on higher working capital — a key factor traders are monitoring alongside the data center growth narrative.
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Head-to-Head Comparison
The most fundamental contrast between ROP and WTS lies in their business models. ROP is a high-margin, asset-light software compounder whose growth relies on acquisitions, recurring revenue, and the monetization of AI features embedded in existing platforms. WTS is a capital-intensive manufacturer whose near-term growth is concentrated in the data center cooling market, layered onto a stable repair-and-replacement base.
On relative performance and momentum, WTS has shown stronger share-price gains over the trailing year, supported by record sales and consecutive guidance increases. ROP has rebounded after an earlier drawdown tied to software-sector sentiment, aided by aggressive buybacks and steady earnings beats. Valuation also diverges: ROP trades at a premium multiple consistent with its software profile, while WTS carries an elevated multiple relative to industrial peers, reflecting optimism about data center demand.
Risk factors differ as well. ROP's key considerations include acquisition integration and the pace of software-to-cloud transitions, while WTS faces tariff and inflation-driven margin erosion, softer residential and nonresidential construction markets, and the potential variability of project-based data center orders. Sector exposure further distinguishes them: ROP is positioned within enterprise and application software, whereas WTS is rooted in water infrastructure and commercial construction.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely assign a modest near-term edge to WTS on the strength of its trend consistency and visible catalysts. The stock's record sales, repeated upward guidance revisions, and expanding data center pipeline suggest a more clearly defined momentum trajectory, though softer margins and valuation risk temper the conviction. ROP presents a steadier, cash-rich profile with robust buybacks and recurring revenue, which may appeal to strategies prioritizing stability over acceleration. The AI's preference, framed in probabilistic terms, hinges on whether current data center demand momentum outweighs Roper's durable, high-margin software franchise.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ROP is a Hold and WTS is a Buy.
Momentum Indicator for ROP turns positive, indicating new upward trend
ROP saw its Momentum Indicator move above the 0 level on October 08, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 107 similar instances where the indicator turned positive. In 49 of the 107 cases, the stock moved higher in the following days. The odds of a move higher are at 46%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for ROP just turned positive on October 06, 2026. Looking at past instances where ROP's MACD turned positive, the stock continued to rise in 19 of 48 cases over the following month. The odds of a continued upward trend are 40%.
ROP moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.05% 3-day Advance, the price is estimated to grow further. Considering data from situations where ROP advanced for three days, in 142 of 340 cases, the price rose further within the following month. The odds of a continued upward trend are 42%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for ROP crossed bearishly below the 50-day moving average on September 18, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 46%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ROP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
ROP broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ROP entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. ROP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 61 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.307) is normal, around the industry mean (-1.734). P/E Ratio (18.101) is within average values for comparable stocks, (15.183). Projected Growth (PEG Ratio) (1.393) is also within normal values, averaging (2.824). Dividend Yield (0.008) settles around the average of (0.074) among similar stocks. P/S Ratio (4.782) is also within normal values, averaging (71.128).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ROP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
Momentum Indicator for WTS turns positive, indicating new upward trend
WTS saw its Momentum Indicator move above the 0 level on October 21, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 86 similar instances where the indicator turned positive. In 58 of the 86 cases, the stock moved higher in the following days. The odds of a move higher are at 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for WTS just turned positive on October 16, 2026. Looking at past instances where WTS's MACD turned positive, the stock continued to rise in 27 of 41 cases over the following month. The odds of a continued upward trend are 66%.
Following a +1.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where WTS advanced for three days, in 210 of 330 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
WTS moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WTS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
WTS broke above its upper Bollinger Band on October 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for WTS entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 34 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. WTS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 48 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.541) is normal, around the industry mean (4.327). P/E Ratio (31.738) is within average values for comparable stocks, (38.298). Projected Growth (PEG Ratio) (3.180) is also within normal values, averaging (1.879). Dividend Yield (0.007) settles around the average of (0.032) among similar stocks. P/S Ratio (4.365) is also within normal values, averaging (186.943).
ROP | WTS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 33 | 35 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 68 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 17 | |
SMR RATING 1..100 | 61 | 48 | |
PRICE GROWTH RATING 1..100 | 44 | 42 | |
P/E GROWTH RATING 1..100 | 88 | 34 | |
SEASONALITY SCORE 1..100 | 75 | 85 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ROP's Valuation (68) in the Industrial Conglomerates industry is in the same range as WTS (86) in the Industrial Machinery industry. This means that ROP’s stock grew similarly to WTS’s over the last 12 months.
WTS's Profit vs Risk Rating (17) in the Industrial Machinery industry is significantly better than the same rating for ROP (100) in the Industrial Conglomerates industry. This means that WTS’s stock grew significantly faster than ROP’s over the last 12 months.
WTS's SMR Rating (48) in the Industrial Machinery industry is in the same range as ROP (61) in the Industrial Conglomerates industry. This means that WTS’s stock grew similarly to ROP’s over the last 12 months.
WTS's Price Growth Rating (42) in the Industrial Machinery industry is in the same range as ROP (44) in the Industrial Conglomerates industry. This means that WTS’s stock grew similarly to ROP’s over the last 12 months.
WTS's P/E Growth Rating (34) in the Industrial Machinery industry is somewhat better than the same rating for ROP (88) in the Industrial Conglomerates industry. This means that WTS’s stock grew somewhat faster than ROP’s over the last 12 months.
| ROP | WTS | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 43% | N/A |
| Stochastic ODDS (%) | 1 day ago 45% | 1 day ago 49% |
| Momentum ODDS (%) | 1 day ago 46% | 1 day ago 67% |
| MACD ODDS (%) | 1 day ago 40% | 1 day ago 66% |
| TrendWeek ODDS (%) | 1 day ago 41% | 1 day ago 62% |
| TrendMonth ODDS (%) | 1 day ago 37% | 1 day ago 58% |
| Advances ODDS (%) | 3 days ago 42% | 2 days ago 64% |
| Declines ODDS (%) | 16 days ago 45% | 10 days ago 54% |
| BollingerBands ODDS (%) | 1 day ago 55% | 1 day ago 48% |
| Aroon ODDS (%) | 1 day ago 50% | 1 day ago 65% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ROP’s FA Score shows that 0 FA rating(s) are green while WTS’s FA Score has 1 green FA rating(s).
- ROP’s FA Score: 0 green, 5 red.
- WTS’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ROP’s TA Score shows that 4 TA indicator(s) are bullish while WTS’s TA Score has 4 bullish TA indicator(s).
- ROP’s TA Score: 4 bullish, 6 bearish.
- WTS’s TA Score: 4 bullish, 4 bearish.
Price Growth
ROP (@Packaged Software) experienced а +6.67% price change this week, while WTS (@Industrial Machinery) price change was +3.21% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -0.43%. For the same industry, the average monthly price growth was -3.98%, and the average quarterly price growth was +4.31%.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -7.37%. For the same industry, the average monthly price growth was -16.92%, and the average quarterly price growth was -22.09%.
Reported Earning Dates
ROP is expected to report earnings on Oct 22, 2026.
WTS is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Packaged Software (-0.43% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
@Industrial Machinery (-7.37% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
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ROP and
Correlation & Price change
A.I.dvisor indicates that over the last year, ROP has been closely correlated with AME. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if ROP jumps, then AME could also see price increases.
| Ticker / NAME | Correlation To ROP | 1D Price Change % | ||
|---|---|---|---|---|
| ROP | 100% | +9.73% | ||
| AME - ROP | 75% Closely correlated | -4.58% | ||
| GGG - ROP | 71% Closely correlated | -15.32% | ||
| IEX - ROP | 69% Closely correlated | -3.63% | ||
| OTIS - ROP | 69% Closely correlated | +4.49% | ||
| NDSN - ROP | 68% Closely correlated | -3.87% | ||
More | ||||
WTS and
Correlation & Price change
A.I.dvisor indicates that over the last year, WTS has been loosely correlated with HLMN. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if WTS jumps, then HLMN could also see price increases.
| Ticker / NAME | Correlation To WTS | 1D Price Change % | ||
|---|---|---|---|---|
| WTS | 100% | -1.78% | ||
| HLMN - WTS | 65% Loosely correlated | +1.38% | ||
| LECO - WTS | 64% Loosely correlated | -2.34% | ||
| ROP - WTS | 64% Loosely correlated | +9.73% | ||
| SWK - WTS | 60% Loosely correlated | +3.70% | ||
| RBC - WTS | 59% Loosely correlated | -5.24% | ||
More | ||||
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