RELX PLC (RELX) vs Rentokil Initial PLC (RTO)

RELX PLC and Rentokil Initial PLC are both Specialty Business Services companies. RELX PLC is the larger, with a market value of $58.1B against $10.3B — 5.6× the size. RELX PLC trades at the lower P/E: 15.3× against 60.5×. RELX PLC has the higher net margin (19.7% vs 7.17%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Rentokil Initial PLC yields more (1.96% vs 1.76%). Across the 13 metrics below, Rentokil Initial PLC leads on 7 and RELX PLC on 6.

Valuation

Metric RELX RTO Specialty Business Services median
P/E 15.33 60.49 23.86
P/S n/m n/m 1.06
P/B n/m n/m 2.37
Price to free cash flow n/m n/m 16.54
EV/EBITDA 1.51 1.57 11.51
EV/Sales 0.55 0.32 1.51
Earnings yield 6.52% 1.65% 2.14%
Free cash flow yield 0.00% 0.00% 1.55%

Profitability

Metric RELX RTO Specialty Business Services median
Gross margin 60.78% 0.00% 35.31%
Operating margin 0.00% 0.00% 3.43%
Net margin 19.65% 7.17% 1.67%
Free cash flow margin 0.00% 0.00% 3.28%
Return on equity 0.00% 0.00% 0.58%
Return on assets 0.00% 0.00% 0.33%
Return on invested capital 0.00% 0.00% 0.65%

Growth

Metric RELX RTO Specialty Business Services median
Revenue growth (TTM) 10.29% — 6.04%
EPS growth (last fiscal year) 12.12% 19.23% —
Revenue growth, 5-year CAGR 6.73% 13.76% 7.66%
Net income growth, 5-year CAGR 11.62% 14.46% 0.00%

Health

Metric RELX RTO Specialty Business Services median
Debt to equity 7.10 1.01 0.21
Current ratio 0.45 1.16 1.62
Net debt to EBITDA 1.89 2.87 1.16

Dividend

Metric RELX RTO Specialty Business Services median
Dividend yield 1.76% 1.96% 1.61%
Payout ratio 0.58 — 0.00

Size

Metric RELX RTO Specialty Business Services median
Market cap 58.14b 10.34b 879.14m

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