Rollins (NYSE:ROL) vs. APi Group (NYSE:APG) Financial Analysis

APi Group (NYSE:APG) and Rollins (NYSE:ROL) are both large-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Valuation & Earnings

This table compares APi Group and Rollins’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APi Group	$6.93 billion	1.51	$153.00 million	($2.15)	-17.79
Rollins	$3.07 billion	7.78	$434.96 million	$0.89	55.45

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

Volatility and Risk

APi Group has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Rollins has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

86.6% of APi Group shares are owned by institutional investors. Comparatively, 51.8% of Rollins shares are owned by institutional investors. 16.4% of APi Group shares are owned by insiders. Comparatively, 4.7% of Rollins shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APi Group	2.49%	37.83%	10.90%
Rollins	13.94%	37.73%	17.14%

Analyst Ratings

This is a summary of recent ratings for APi Group and Rollins, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APi Group	0	2	5	0	2.71
Rollins	0	2	4	0	2.67

APi Group presently has a consensus target price of $44.29, indicating a potential upside of 15.78%. Rollins has a consensus target price of $47.00, indicating a potential downside of 4.76%. Given APi Group’s stronger consensus rating and higher probable upside, analysts clearly believe APi Group is more favorable than Rollins.

Summary

APi Group beats Rollins on 8 of the 14 factors compared between the two stocks.

About APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

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.