Contrasting Rollins (NYSE:ROL) & BrightView (NYSE:BV)

BrightView (NYSE:BV) and Rollins (NYSE:ROL) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for BrightView and Rollins, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrightView	2	3	3	1	2.33
Rollins	2	12	4	1	2.21

BrightView presently has a consensus target price of $13.93, suggesting a potential upside of 29.43%. Rollins has a consensus target price of $41.00, suggesting a potential upside of 16.23%. Given BrightView’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BrightView is more favorable than Rollins.

Earnings & Valuation

This table compares BrightView and Rollins”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrightView	$2.67 billion	0.38	$56.00 million	($0.25)	-43.06
Rollins	$3.76 billion	4.51	$526.71 million	$1.10	32.07

Rollins has higher revenue and earnings than BrightView. BrightView is trading at a lower price-to-earnings ratio than Rollins, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BrightView and Rollins’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BrightView	0.74%	5.03%	1.87%
Rollins	13.19%	39.40%	17.08%

Risk & Volatility

BrightView has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Rollins has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Institutional & Insider Ownership

92.4% of BrightView shares are held by institutional investors. Comparatively, 51.8% of Rollins shares are held by institutional investors. 2.8% of BrightView shares are held by insiders. Comparatively, 5.8% of Rollins shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Rollins beats BrightView on 10 of the 14 factors compared between the two stocks.

About BrightView

BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 8,800 office parks and corporate campuses 7,100 residential communities, and 550 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.

About Rollins

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.