Analyzing Rentokil Initial (NYSE:RTO) & Itex (OTCMKTS:ITEX)

Rentokil Initial (NYSE:RTO) and Itex (OTCMKTS:ITEX) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Dividends

Rentokil Initial pays an annual dividend of $0.45 per share and has a dividend yield of 1.8%. Itex pays an annual dividend of $0.80 per share and has a dividend yield of 24.2%. Rentokil Initial pays out 29.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Rentokil Initial and Itex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rentokil Initial	1	1	1	1	2.50
Itex	0	0	0	0	0.00

Profitability

This table compares Rentokil Initial and Itex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rentokil Initial	N/A	N/A	N/A
Itex	N/A	N/A	N/A

Earnings & Valuation

This table compares Rentokil Initial and Itex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rentokil Initial	$6.95 billion	1.85	$392.32 million	$1.51	16.86
Itex	$6.13 million	0.88	$700,000.00	N/A	N/A

Rentokil Initial has higher revenue and earnings than Itex.

Risk & Volatility

Rentokil Initial has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Itex has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Institutional & Insider Ownership

9.9% of Rentokil Initial shares are held by institutional investors. 32.0% of Itex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Rentokil Initial beats Itex on 8 of the 11 factors compared between the two stocks.

About Rentokil Initial

Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management for commercial customers. The company provides hygiene services, including the provision and maintenance of products, such as soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats. In addition, it engages in the supply and maintenance of workwear and protective equipment. Further, the company offers property care services; and provides a range of specialist cleaning services, such as graffiti removal deep cleaning of kitchens and washrooms, trauma cleaning, and flood or fire damage cleaning, as well as specialist medical and hygiene services. Rentokil Initial plc was founded in 1903 and is headquartered in Crawley, the United Kingdom.

About Itex

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company’s marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.