Financial Contrast: Rollins (NYSE:ROL) & Element Fleet Management (OTCMKTS:ELEEF)

Element Fleet Management (OTCMKTS:ELEEF) and Rollins (NYSE:ROL) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Dividends

Element Fleet Management pays an annual dividend of $0.43 per share and has a dividend yield of 2.9%. Rollins pays an annual dividend of $0.73 per share and has a dividend yield of 2.3%. Element Fleet Management pays out 58.1% of its earnings in the form of a dividend. Rollins pays out 66.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rollins has increased its dividend for 4 consecutive years. Element Fleet Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Element Fleet Management and Rollins’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Element Fleet Management	23.33%	24.75%	3.91%
Rollins	13.55%	38.81%	17.24%

Institutional & Insider Ownership

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

Valuation and Earnings

This table compares Element Fleet Management and Rollins”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Element Fleet Management	$1.19 billion	4.98	$279.13 million	$0.74	20.36
Rollins	$3.76 billion	4.13	$526.71 million	$1.10	29.32

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

Analyst Ratings

This is a summary of recent ratings and price targets for Element Fleet Management and Rollins, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Element Fleet Management	0	0	2	1	3.33
Rollins	4	10	4	1	2.11

Rollins has a consensus price target of $45.94, indicating a potential upside of 42.43%. Given Rollins’ higher possible upside, analysts plainly believe Rollins is more favorable than Element Fleet Management.

Summary

Rollins beats Element Fleet Management on 11 of the 16 factors compared between the two stocks.

About Element Fleet Management

Element Fleet Management Corp. operates as a fleet management company primarily in Canada, Mexico, Australia, and New Zealand. The company offers end-to-end fleet cars, trucks, and material handling support equipment acquisition; and end-to-end electric vehicle fleet including fleet planning, charging infrastructure solutions, acquisition, financing, maintenance, and remarketing. It provides commercial fleet financing comprising operating and capital lease, sale and leaseback funding, loans, rental fleet financing, client owned acquisition program, and fair market value lease for fleet cars, trucks, and equipment; and vehicle licensing and registration services, such as renewal, fleet title management, and insurance card management services. In addition, the company provides collision management services, such as 24/7 driver assistance, collision evaluation, repair management, and subrogation; fleet management outsourcing solutions; fuel, maintenance, and safety solutions; telematics and fleet connectivity solutions; and toll and violation management, as well as fleet remarketing, sale leaseback, and strategic fleet management consulting services. It serves construction, energy, oil and gas, food and beverages, healthcare, services, and transport sectors. Element Fleet Management Corp. was incorporated in 2007 and is based in Toronto, Canada.

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.