Financial Contrast: Rollins (ROL) & Frontdoor (FTDR)

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

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.

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

Analyst Ratings

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

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 currently has a consensus price target of $55.50, suggesting a potential downside of 6.25%. Frontdoor has a consensus price target of $50.69, suggesting a potential upside of 48.86%. Given Frontdoor’s stronger consensus rating and higher probable upside, analysts clearly believe Frontdoor is more favorable than Rollins.

Insider & Institutional Ownership

38.2% of Rollins shares are owned by institutional investors. Comparatively, 0.0% of Frontdoor shares are owned by institutional investors. 56.3% of Rollins shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Rollins and Frontdoor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rollins $1.67 billion 7.72 $179.12 million $0.87 68.05
Frontdoor N/A N/A N/A N/A N/A

Rollins has higher revenue and earnings than Frontdoor.

Summary

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

About Rollins

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.

About Frontdoor

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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