Head-To-Head Comparison: CAPITA (OTCMKTS:CTAGY) and Rentokil Initial (NYSE:RTO)

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

Volatility and Risk

Rentokil Initial has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, CAPITA has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Rentokil Initial and CAPITA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rentokil Initial	1	2	3	2	2.75
CAPITA	0	0	0	1	4.00

Earnings and Valuation

This table compares Rentokil Initial and CAPITA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rentokil Initial	$6.95 billion	2.06	$392.32 million	N/A	N/A
CAPITA	$3.09 billion	0.16	$98.01 million	N/A	N/A

Rentokil Initial has higher revenue and earnings than CAPITA.

Institutional and Insider Ownership

9.9% of Rentokil Initial shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Rentokil Initial and CAPITA’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
CAPITA	N/A	N/A	N/A

Summary

Rentokil Initial beats CAPITA on 7 of the 8 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 CAPITA

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.