UniFirst (NYSE:UNF) vs. Rollins (NYSE:ROL) Head to Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UniFirst	4.65%	6.44%	5.03%
Rollins	13.55%	38.81%	17.24%

Analyst Ratings

This is a summary of recent ratings for UniFirst and Rollins, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniFirst	0	4	0	0	2.00
Rollins	2	12	4	1	2.21

UniFirst currently has a consensus target price of $246.67, indicating a potential downside of 9.89%. Rollins has a consensus target price of $42.47, indicating a potential upside of 26.65%. Given Rollins’ stronger consensus rating and higher probable upside, analysts clearly believe Rollins is more favorable than UniFirst.

Insider & Institutional Ownership

78.2% of UniFirst shares are owned by institutional investors. Comparatively, 51.8% of Rollins shares are owned by institutional investors. 0.9% of UniFirst shares are owned by insiders. Comparatively, 5.8% of Rollins shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniFirst	$2.43 billion	2.03	$148.27 million	$6.34	43.18
Rollins	$3.92 billion	4.11	$526.71 million	$1.10	30.48

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

Dividends

UniFirst pays an annual dividend of $1.46 per share and has a dividend yield of 0.5%. Rollins pays an annual dividend of $0.73 per share and has a dividend yield of 2.2%. UniFirst pays out 23.0% 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. UniFirst has raised its dividend for 7 consecutive years and Rollins has raised its dividend for 4 consecutive years.

Risk and Volatility

UniFirst has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Rollins has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Summary

Rollins beats UniFirst on 13 of the 18 factors compared between the two stocks.

About UniFirst

UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada. The company operates through U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid segments. It designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments. The company also rents and sells industrial wiping products, floor mats, facility service products, and dry and wet mops; restroom and cleaning supplies comprising air fresheners, paper products, gloves, masks, sanitizers, and hand soaps; and other textile products. In addition, it provides first aid cabinet services and other safety supplies; decontaminates and cleans work clothes, and other items that is exposed to radioactive materials; and services special cleanroom protective wear and facilities. Further, it offers a range of garment service options, including full-service rental programs in which garments are cleaned and serviced; lease programs in which garments are cleaned and maintained by individual employees; and purchase programs to buy garments and related items directly. The company serves automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, healthcare providers, government agencies, research and development laboratories, high technology companies, and utilities operating nuclear reactors, as well as others who require employee clothing for image, identification, protection, or utility purposes. UniFirst Corporation was founded in 1936 and is headquartered in Wilmington, Massachusetts.

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.