Rentokil Initial PLC (RTO) vs Unifirst Corporation (UNF)

Rentokil Initial PLC and Unifirst Corporation are both Specialty Business Services companies. Rentokil Initial PLC is the larger, with a market value of $10.3B against $4.5B — 2.3× the size. Unifirst Corporation trades at the lower P/E: 39.1× against 60.5×. Rentokil Initial PLC has the higher net margin (7.17% vs 4.65%) and the lower return on invested capital (0.00% vs 4.43%). Both pay a dividend; Rentokil Initial PLC yields more (1.96% vs 0.75%). Across the 19 metrics below, Unifirst Corporation leads on 12 and Rentokil Initial PLC on 7.

Valuation

Metric RTO UNF Specialty Business Services median
P/E 60.49 39.14 23.86
P/S n/m 1.88 1.06
P/B n/m 2.13 2.37
Price to free cash flow n/m 52.66 16.54
EV/EBITDA 1.57 15.81 11.51
EV/Sales 0.32 1.81 1.51
Earnings yield 1.65% 2.56% 2.14%
Free cash flow yield 0.00% 1.90% 1.55%

Profitability

Metric RTO UNF Specialty Business Services median
Gross margin 0.00% 36.68% 35.31%
Operating margin 0.00% 5.77% 3.43%
Net margin 7.17% 4.65% 1.67%
Free cash flow margin 0.00% 3.57% 3.28%
Return on equity 0.00% 5.30% 0.58%
Return on assets 0.00% 4.15% 0.33%
Return on invested capital 0.00% 4.43% 0.65%

Growth

Metric RTO UNF Specialty Business Services median
Revenue growth (TTM) — 1.42% 6.04%
EPS growth (last fiscal year) 19.23% 2.70% —
Revenue growth, 5-year CAGR 13.76% 6.16% 7.66%
Net income growth, 5-year CAGR 14.46% 1.78% 0.00%

Health

Metric RTO UNF Specialty Business Services median
Debt to equity 1.01 0.00 0.21
Current ratio 1.16 3.11 1.62
Net debt to EBITDA 2.87 (0.64) 1.16

Dividend

Metric RTO UNF Specialty Business Services median
Dividend yield 1.96% 0.75% 1.61%
Payout ratio — 0.23 0.00

Size

Metric RTO UNF Specialty Business Services median
Market cap 10.34b 4.48b 879.14m

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