First Advantage Corporation (FA) vs Rentokil Initial PLC (RTO)

First Advantage Corporation and Rentokil Initial PLC are both Specialty Business Services companies. Rentokil Initial PLC is the larger, with a market value of $10.2B against $3.2B — 3.2× the size. Rentokil Initial PLC trades at the lower P/E: 59.3× against 131×. Rentokil Initial PLC has the higher net margin (7.17% vs 1.51%) and the lower return on invested capital (0.00% vs 3.59%). Across the 18 metrics below, First Advantage Corporation leads on 10 and Rentokil Initial PLC on 8.

Valuation

Metric FA RTO Specialty Business Services median
P/E 131.40 59.32 23.96
P/S 1.97 n/m 1.06
P/B 2.53 n/m 2.34
Price to free cash flow 16.73 n/m 16.32
EV/EBITDA 11.75 1.49 11.88
EV/Sales 3.06 0.31 1.55
Earnings yield 0.76% 1.69% 1.89%
Free cash flow yield 5.98% 0.00% 1.47%

Profitability

Metric FA RTO Specialty Business Services median
Gross margin 45.22% 0.00% 35.31%
Operating margin 10.68% 0.00% 3.43%
Net margin 1.51% 7.17% 1.67%
Free cash flow margin 11.75% 0.00% 3.28%
Return on equity 1.94% 0.00% 0.00%
Return on assets 0.66% 0.00% 0.00%
Return on invested capital 3.59% 0.00% 0.65%

Growth

Metric FA RTO Specialty Business Services median
Revenue growth (TTM) 32.89% — 6.04%
EPS growth (last fiscal year) 72.97% 19.23% 6.56%
Revenue growth, 5-year CAGR 25.33% 13.76% 7.66%
Net income growth, 5-year CAGR 0.00% 14.46% 0.00%

Health

Metric FA RTO Specialty Business Services median
Debt to equity 1.57 1.01 0.21
Current ratio 2.53 1.06 1.62
Net debt to EBITDA 4.75 2.87 1.16

Dividend

Metric FA RTO Specialty Business Services median
Dividend yield — 3.14% 2.34%
Payout ratio — — 0.35

Size

Metric FA RTO Specialty Business Services median
Market cap 3.22b 10.18b 837.33m

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