First Advantage Corporation (FA) vs Unifirst Corporation (UNF)

First Advantage Corporation and Unifirst Corporation are both Specialty Business Services companies. Unifirst Corporation is the larger, with a market value of $4.5B against $3.4B — 1.3× the size. Unifirst Corporation trades at the lower P/E: 39.1× against 135×. First Advantage Corporation grew revenue faster over the last twelve months: 32.9% against 1.42%. Unifirst Corporation has the higher net margin (4.65% vs 1.51%) and the higher return on invested capital (4.43% vs 3.59%). Across the 22 metrics below, Unifirst Corporation leads on 13 and First Advantage Corporation on 9.

Valuation

Metric FA UNF Specialty Business Services median
P/E 135.27 39.14 23.86
P/S 2.02 1.88 1.06
P/B 2.60 2.13 2.37
Price to free cash flow 17.22 52.66 16.54
EV/EBITDA 11.98 15.81 11.51
EV/Sales 3.12 1.81 1.51
Earnings yield 0.74% 2.56% 2.14%
Free cash flow yield 5.81% 1.90% 1.55%

Profitability

Metric FA UNF Specialty Business Services median
Gross margin 45.22% 36.68% 35.31%
Operating margin 10.68% 5.77% 3.43%
Net margin 1.51% 4.65% 1.67%
Free cash flow margin 11.75% 3.57% 3.28%
Return on equity 1.94% 5.30% 0.58%
Return on assets 0.66% 4.15% 0.33%
Return on invested capital 3.59% 4.43% 0.65%

Growth

Metric FA UNF Specialty Business Services median
Revenue growth (TTM) 32.89% 1.42% 6.04%
EPS growth (last fiscal year) 72.97% 2.70% —
Revenue growth, 5-year CAGR 25.33% 6.16% 7.66%
Net income growth, 5-year CAGR 0.00% 1.78% 0.00%

Health

Metric FA UNF Specialty Business Services median
Debt to equity 1.57 0.00 0.21
Current ratio 2.53 3.11 1.62
Net debt to EBITDA 4.75 (0.64) 1.16

Dividend

Metric FA UNF Specialty Business Services median
Dividend yield — 0.75% 1.61%
Payout ratio 0.00 0.23 0.00

Size

Metric FA UNF Specialty Business Services median
Market cap 3.42b 4.48b 879.14m

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