Head to Head Analysis: Team (NYSE:TISI) and Rollins (NYSE:ROL)

Team (NYSE:TISI) and Rollins (NYSE:ROL) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Team	$851.33 million	0.10	-$38.27 million	($11.37)	-1.59
Rollins	$3.39 billion	7.96	$466.38 million	$0.99	56.19

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

Volatility & Risk

Team has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Rollins has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Insider & Institutional Ownership

46.6% of Team shares are held by institutional investors. Comparatively, 51.8% of Rollins shares are held by institutional investors. 3.7% of Team shares are held by insiders. Comparatively, 4.5% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Team	-5.97%	-753.94%	-6.18%
Rollins	13.78%	37.31%	17.22%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Team and Rollins, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Team	0	0	0	0	0.00
Rollins	0	4	6	0	2.60

Rollins has a consensus target price of $60.50, indicating a potential upside of 8.75%. Given Rollins’ stronger consensus rating and higher possible upside, analysts plainly believe Rollins is more favorable than Team.

Summary

Rollins beats Team on 13 of the 14 factors compared between the two stocks.

About Team

Team, Inc., together with its subsidiaries, provides a suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services in the United States, Canada, Europe, and internationally. It operates through Inspection and Heat Treating (IHT) and Mechanical Services (MS) segments. The IHT segment offers non-destructive evaluation and testing, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, and eddy current testing services. This segment also provides long-range guided ultrasonic, phased array ultrasonic testing, terminals and storage inspection and management program, rope access, mechanical and pipeline integrity, and heat treating services. The MS segment offers engineered composite repair, emissions control/compliance, hot tapping, valve insertion, field machining, bolted joint integrity, vapor barrier plug and weld testing, and valve management services, as well as leak repair services. Team, Inc. was founded in 1973 and is headquartered in Sugar Land, Texas.

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.