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 $14.5B against $5.0B — 2.9× the size. Frontdoor Inc. trades at the lower P/E: 19.2× against 27.3×. Rollins, Inc. grew revenue faster over the last twelve months: 9.90% against 9.16%. Rollins, Inc. has the higher net margin (13.6% vs 12.7%) and the lower return on invested capital (22.6% vs 27.6%). Across the 22 metrics below, Frontdoor Inc. leads on 15 and Rollins, Inc. on 7.

Valuation

Metric FTDR ROL Personal Services median
P/E 19.22 27.30 15.23
P/S 2.41 3.68 1.12
P/B 18.21 10.11 3.60
Price to free cash flow 13.40 23.16 13.38
EV/EBITDA 10.45 17.46 9.17
EV/Sales 2.66 3.84 1.49
Earnings yield 5.20% 3.66% 4.97%
Free cash flow yield 7.46% 4.32% 4.32%

Profitability

Metric FTDR ROL Personal Services median
Gross margin 55.55% 52.37% 30.06%
Operating margin 21.48% 18.65% 10.27%
Net margin 12.72% 13.55% 3.09%
Free cash flow margin 17.99% 15.91% 4.96%
Return on equity 101.68% 37.01% 0.00%
Return on assets 12.53% 16.27% 0.00%
Return on invested capital 27.62% 22.61% 5.36%

Growth

Metric FTDR ROL Personal Services median
Revenue growth (TTM) 9.16% 9.90% 5.87%
EPS growth (last fiscal year) 13.62% 13.54% —
Revenue growth, 5-year CAGR 7.26% 11.72% 4.52%
Net income growth, 5-year CAGR 17.89% 14.58% 5.79%

Health

Metric FTDR ROL Personal Services median
Debt to equity 4.08 0.49 1.93
Current ratio 1.59 0.63 0.90
Net debt to EBITDA 1.15 0.60 1.31

Dividend

Metric FTDR ROL Personal Services median
Dividend yield — 1.23% 1.91%
Payout ratio 0.00 0.62 0.11

Size

Metric FTDR ROL Personal Services median
Market cap 4.95b 14.51b 133.27m

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