MEDIFAST INC (MED) vs Rollins, Inc. (ROL)

MEDIFAST INC and Rollins, Inc. are both Personal Services companies. Rollins, Inc. is the larger, with a market value of $14.5B against $133.3M — 108.9× the size. MEDIFAST INC has negative trailing earnings, so its P/E is not meaningful; Rollins, Inc. trades at 27.3×. Rollins, Inc. grew revenue faster over the last twelve months: 9.90% against −34.0%. Rollins, Inc. has the higher net margin (13.6% vs −8.08%) and the higher return on invested capital (22.6% vs −45.9%). Both pay a dividend; MEDIFAST INC yields more (9.05% vs 1.23%). Across the 21 metrics below, Rollins, Inc. leads on 13 and MEDIFAST INC on 8.

Valuation

Metric MED ROL Personal Services median
P/E n/m 27.30 15.23
P/S 0.43 3.68 1.12
P/B 0.69 10.11 3.60
Price to free cash flow n/m 23.16 13.38
EV/EBITDA 2.75 17.46 9.17
EV/Sales (0.05) 3.84 1.49
Earnings yield (19.15%) 3.66% 4.97%
Free cash flow yield (14.25%) 4.32% 4.32%

Profitability

Metric MED ROL Personal Services median
Gross margin 69.24% 52.37% 30.06%
Operating margin (6.15%) 18.65% 10.27%
Net margin (8.08%) 13.55% 3.09%
Free cash flow margin 2.41% 15.91% 4.96%
Return on equity (12.42%) 37.01% 0.00%
Return on assets (9.67%) 16.27% 0.00%
Return on invested capital (45.91%) 22.61% 5.36%

Growth

Metric MED ROL Personal Services median
Revenue growth (TTM) (34.03%) 9.90% 5.87%
EPS growth (last fiscal year) (994.74%) 13.54% —
Revenue growth, 5-year CAGR (16.22%) 11.72% 4.52%
Net income growth, 5-year CAGR 0.00% 14.58% 5.79%

Health

Metric MED ROL Personal Services median
Debt to equity 0.00 0.49 1.93
Current ratio 4.86 0.63 0.90
Net debt to EBITDA 260.55 0.60 1.31

Dividend

Metric MED ROL Personal Services median
Dividend yield 9.05% 1.23% 1.91%
Payout ratio 0.54 0.62 0.11

Size

Metric MED ROL Personal Services median
Market cap 133.27m 14.51b 133.27m

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