Rentokil Initial PLC (RTO) vs UL Solutions Inc. (ULS)

Rentokil Initial PLC and UL Solutions Inc. are both Specialty Business Services companies. UL Solutions Inc. is the larger, with a market value of $15.0B against $10.5B — 1.4× the size. UL Solutions Inc. trades at the lower P/E: 29.2× against 61.8×. UL Solutions Inc. has the higher net margin (16.1% vs 7.17%) and the higher return on invested capital (23.6% vs 0.00%). Both pay a dividend; Rentokil Initial PLC yields more (3.02% vs 0.77%). Across the 17 metrics below, UL Solutions Inc. leads on 13 and Rentokil Initial PLC on 4.

Valuation

Metric RTO ULS Specialty Business Services median
P/E 61.81 29.21 24.35
P/S n/m 4.71 1.05
P/B n/m 9.14 2.27
Price to free cash flow n/m 33.96 16.71
EV/EBITDA 1.49 19.58 11.55
EV/Sales 0.31 4.68 1.53
Earnings yield 1.62% 3.42% 1.82%
Free cash flow yield 0.00% 2.94% 1.51%

Profitability

Metric RTO ULS Specialty Business Services median
Gross margin 0.00% 50.41% 35.31%
Operating margin 0.00% 17.86% 3.43%
Net margin 7.17% 16.05% 1.67%
Free cash flow margin 0.00% 13.86% 3.28%
Return on equity 0.00% 36.96% 0.00%
Return on assets 0.00% 16.72% 0.00%
Return on invested capital 0.00% 23.62% 0.65%

Growth

Metric RTO ULS Specialty Business Services median
Revenue growth (TTM) — 6.61% 6.30%
EPS growth (last fiscal year) 19.23% (1.23%) 6.56%
Revenue growth, 5-year CAGR 13.76% — 7.66%
Net income growth, 5-year CAGR 14.46% — 0.00%

Health

Metric RTO ULS Specialty Business Services median
Debt to equity 1.01 0.19 0.21
Current ratio 1.06 1.42 1.62
Net debt to EBITDA 2.87 0.28 1.16

Dividend

Metric RTO ULS Specialty Business Services median
Dividend yield 3.02% 0.77% 2.27%
Payout ratio — 0.23 0.35

Size

Metric RTO ULS Specialty Business Services median
Market cap 10.47b 15.02b 796.45m

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