Analyzing Rollins (ROL) and Frontdoor (FTDR)

Rollins (NYSE:ROL) and Frontdoor (NASDAQ:FTDR) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Rollins and Frontdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rollins 11.97% 32.90% 20.93%
Frontdoor N/A N/A N/A

Valuation and Earnings

This table compares Rollins and Frontdoor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rollins $1.67 billion 7.74 $179.12 million $0.87 68.22
Frontdoor N/A N/A N/A N/A N/A

Rollins has higher revenue and earnings than Frontdoor.

Insider & Institutional Ownership

38.2% of Rollins shares are held by institutional investors. Comparatively, 0.0% of Frontdoor shares are held by institutional investors. 56.3% of Rollins shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Rollins and Frontdoor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rollins 0 3 3 0 2.50
Frontdoor 0 1 4 0 2.80

Rollins presently has a consensus target price of $55.50, indicating a potential downside of 6.49%. Frontdoor has a consensus target price of $50.69, indicating a potential upside of 44.74%. Given Frontdoor’s stronger consensus rating and higher probable upside, analysts clearly believe Frontdoor is more favorable than Rollins.

Dividends

Rollins pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Frontdoor does not pay a dividend. Rollins pays out 64.4% of its earnings in the form of a dividend. Rollins has increased its dividend for 14 consecutive years.

Summary

Rollins beats Frontdoor on 8 of the 12 factors compared between the two stocks.

Rollins Company Profile

Rollins, Inc., through its subsidiaries, provides pest and termite control services to residential and commercial customers. It offers protection against termite damage, rodents, and insects to homes and businesses, including hotels, food service establishments, food manufacturers, retailers, and transportation companies. The company also provides pest management and sanitation services and products to the food and commodity industries; consulting services on border protection related to Australia's biosecurity program; and bird control and specialist services, as well as offers specialized services to mining, and oil and gas sectors. In addition, it offers mosquito control, wildlife services, lawn care, insulation, and HVAC services. It serves clients directly, as well as through franchisee operations in North America, Australia, Europe, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Africa, Canada, Australia, and Mexico. Rollins, Inc. was founded in 1948 and is headquartered in Atlanta, Georgia.

Frontdoor Company Profile

frontdoor, inc. operates a home services platform that provides home service plans to homeowners in the United States. It provides services under the HSA, OneGuard, Landmark, and American Home Shield brand names. The company serves homeowners who require assistance with technical home repair issues by utilizing its network of pre-qualified professional contractor firms. The company was formerly known as AHS Holding Company, Inc. and changed its name to frontdoor, inc. in July 2018. The company was incorporated in 2018 and is headquartered in Memphis, Tennessee. frontdoor, inc. is a subsidiary of ServiceMaster Global Holdings, Inc.

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