Head-To-Head Contrast: Worley (OTCMKTS:WYGPY) vs. Rentokil Initial (NYSE:RTO)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Worley and Rentokil Initial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worley	0	0	1	0	3.00
Rentokil Initial	1	2	4	1	2.63

Rentokil Initial has a consensus target price of $34.00, indicating a potential upside of 13.58%. Given Rentokil Initial’s higher probable upside, analysts clearly believe Rentokil Initial is more favorable than Worley.

Risk & Volatility

Worley has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Rentokil Initial has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worley	$7.28 billion	0.61	$264.87 million	N/A	N/A
Rentokil Initial	$6.95 billion	2.18	$392.32 million	N/A	N/A

Rentokil Initial has lower revenue, but higher earnings than Worley.

Dividends

Worley pays an annual dividend of $0.26 per share and has a dividend yield of 3.0%. Rentokil Initial pays an annual dividend of $0.33 per share and has a dividend yield of 1.1%.

Institutional & Insider Ownership

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

Summary

Rentokil Initial beats Worley on 7 of the 10 factors compared between the two stocks.

About Worley

Worley Limited provides professional project and asset services to energy, chemicals, and resources sectors worldwide. The company offers digital, consulting, engineering and design, construction management, construction and fabrication, supply chain management, project management, and operation and maintenance services, as well as maintenance, modification, and operation services. It serves new energy, power, upstream and midstream, refining and chemicals, and infrastructure markets, as well as mining, minerals, and metals markets. The company was formerly known as WorleyParsons Limited and changed its name to Worley Limited in October 2019. The company was founded in 1893 and is based in Sydney, Australia.

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.