Financial Comparison: UL Solutions (NYSE:ULS) vs. Sodexo (OTCMKTS:SDXAY)

Sodexo (OTCMKTS:SDXAY) and UL Solutions (NYSE:ULS) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Volatility & Risk

Sodexo has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, UL Solutions has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sodexo and UL Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sodexo	$26.49 billion	0.32	$765.33 million	N/A	N/A
UL Solutions	$3.05 billion	5.27	$326.00 million	$1.67	47.96

Sodexo has higher revenue and earnings than UL Solutions.

Dividends

Sodexo pays an annual dividend of $0.45 per share and has a dividend yield of 4.0%. UL Solutions pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. UL Solutions pays out 31.1% of its earnings in the form of a dividend.

Profitability

This table compares Sodexo and UL Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sodexo	N/A	N/A	N/A
UL Solutions	10.61%	31.62%	12.55%

Analyst Ratings

This is a summary of current ratings and price targets for Sodexo and UL Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sodexo	1	9	0	0	1.90
UL Solutions	0	5	5	0	2.50

UL Solutions has a consensus price target of $85.50, indicating a potential upside of 6.75%. Given UL Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe UL Solutions is more favorable than Sodexo.

Summary

UL Solutions beats Sodexo on 8 of the 12 factors compared between the two stocks.

About Sodexo

Sodexo S.A. provides food services and facilities management services worldwide. It offers various on-site services, which includes corporate services, energy and resources, government and agencies, and other services; healthcare and seniors; and learning solutions to schools and universities. The company also provides food services comprising retail service, food delivery, and meal and food vouchers, as well as digital food ordering services; savings and purchase solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. In addition, it offers facility management services, including technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

About UL Solutions

UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in June 2022. The company was founded in 1894 and is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East. UL Solutions Inc. operates as a subsidiary of ULSE Inc.