Rollins, Inc. (ROL) vs Service Corporation International (SCI)

Rollins, Inc. and Service Corporation International are both Personal Services companies. Rollins, Inc. is the larger, with a market value of $14.5B against $10.6B — 1.4× the size. Service Corporation International trades at the lower P/E: 20.1× against 27.3×. Rollins, Inc. grew revenue faster over the last twelve months: 9.90% against 2.89%. Rollins, Inc. has the higher net margin (13.6% vs 12.3%) and the higher return on invested capital (22.6% vs 9.28%). Both pay a dividend; Service Corporation International yields more (1.68% vs 1.23%). Across the 23 metrics below, Rollins, Inc. leads on 13 and Service Corporation International on 10.

Valuation

Metric ROL SCI Personal Services median
P/E 27.30 20.11 15.23
P/S 3.68 2.45 1.12
P/B 10.11 6.96 3.60
Price to free cash flow 23.16 16.87 13.38
EV/EBITDA 17.46 11.83 9.17
EV/Sales 3.84 3.60 1.49
Earnings yield 3.66% 4.97% 4.97%
Free cash flow yield 4.32% 5.93% 4.32%

Profitability

Metric ROL SCI Personal Services median
Gross margin 52.37% 26.03% 30.06%
Operating margin 18.65% 22.37% 10.27%
Net margin 13.55% 12.30% 3.09%
Free cash flow margin 15.91% 14.53% 4.96%
Return on equity 37.01% 34.70% 0.00%
Return on assets 16.27% 2.89% 0.00%
Return on invested capital 22.61% 9.28% 5.36%

Growth

Metric ROL SCI Personal Services median
Revenue growth (TTM) 9.90% 2.89% 5.87%
EPS growth (last fiscal year) 13.54% 7.65% —
Revenue growth, 5-year CAGR 11.72% 4.18% 4.52%
Net income growth, 5-year CAGR 14.58% 1.01% 5.79%

Health

Metric ROL SCI Personal Services median
Debt to equity 0.49 3.45 1.93
Current ratio 0.63 0.53 0.90
Net debt to EBITDA 0.60 3.69 1.31

Dividend

Metric ROL SCI Personal Services median
Dividend yield 1.23% 1.68% 1.91%
Payout ratio 0.62 0.34 0.11

Size

Metric ROL SCI Personal Services median
Market cap 14.51b 10.60b 133.27m

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