Frontdoor Inc. (FTDR) vs Rollins, Inc. (ROL)

Frontdoor Inc. and Rollins, Inc. are both Personal Services companies. Rollins, Inc. is the larger, with a market value of $18.5B against $6.6B — 2.8× the size. Frontdoor Inc. trades at the lower P/E: 23.1× against 35.5×. Rollins, Inc. grew revenue faster over the last twelve months: 8.35% against 6.80%. Rollins, Inc. has the higher net margin (13.2% vs 13.0%) and the higher return on invested capital (22.9% vs 0.00%). Across the 22 metrics below, Frontdoor Inc. leads on 12 and Rollins, Inc. on 10.

Valuation

Metric FTDR ROL Personal Services median
P/E 23.08 35.48 14.33
P/S 2.97 4.64 1.07
P/B 22.83 13.32 4.19
Price to free cash flow 16.50 27.42 9.89
EV/EBITDA 12.93 22.21 9.86
EV/Sales 3.23 4.79 1.28
Earnings yield 4.33% 2.82% 3.58%
Free cash flow yield 6.06% 3.65% 6.06%

Profitability

Metric FTDR ROL Personal Services median
Gross margin 54.97% 52.14% 32.10%
Operating margin 0.00% 18.30% 5.04%
Net margin 12.96% 13.19% (2.19%)
Free cash flow margin 18.00% 16.94% 8.29%
Return on equity 0.00% 36.00% 0.00%
Return on assets 12.72% 16.00% 0.00%
Return on invested capital 0.00% 22.94% 0.10%

Growth

Metric FTDR ROL Personal Services median
Revenue growth (TTM) 6.80% 8.35% 4.90%
EPS growth (last fiscal year) 13.62% 13.54% 23.84%
Revenue growth, 5-year CAGR 7.26% 11.72% 4.52%
Net income growth, 5-year CAGR 17.89% 14.58% 10.19%

Health

Metric FTDR ROL Personal Services median
Debt to equity 3.66 0.52 2.13
Current ratio 1.75 0.62 1.13
Net debt to EBITDA 1.15 0.60 1.98

Dividend

Metric FTDR ROL Personal Services median
Dividend yield — 1.89% —
Payout ratio — 0.67 —

Size

Metric FTDR ROL Personal Services median
Market cap 6.61b 18.53b 571.45m

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