Head-To-Head Review: Rentokil Initial (NYSE:RTO) versus Premium Catering (NASDAQ:PC)

Premium Catering (NASDAQ:PC) and Rentokil Initial (NYSE:RTO) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Premium Catering and Rentokil Initial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premium Catering	1	0	0	0	1.00
Rentokil Initial	1	2	5	1	2.67

Rentokil Initial has a consensus target price of $34.00, suggesting a potential upside of 7.41%. Given Rentokil Initial’s stronger consensus rating and higher probable upside, analysts clearly believe Rentokil Initial is more favorable than Premium Catering.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Premium Catering	N/A	N/A	N/A
Rentokil Initial	N/A	N/A	N/A

Volatility and Risk

Premium Catering has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Rentokil Initial has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares Premium Catering and Rentokil Initial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premium Catering	$4.29 million	4.54	-$4.24 million	N/A	N/A
Rentokil Initial	$6.95 billion	2.30	$392.32 million	N/A	N/A

Rentokil Initial has higher revenue and earnings than Premium Catering.

Insider & Institutional Ownership

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

Summary

Rentokil Initial beats Premium Catering on 7 of the 9 factors compared between the two stocks.

About Premium Catering

Premium Catering (Holdings) Limited, through its subsidiary, engages in the business of food catering for function, events, and workers in Singapore. The company provides Halal food in Indian, Bangladesh, and Chinese cuisine to foreign workers, students, and other individuals residing in dormitories, as well foreign workers in the marine, logistics, and poultry industries. It also operates a central kitchen under the Premium Catering brand name to supply budget prepared meals to foreign construction workers; operates food stalls; and provides buffet catering services for private functions, and corporate and community events, as well as provides ancillary delivery services. The company was founded in 2012 and is based in Singapore. Premium Catering (Holdings) Limited operates as a subsidiary of Hero Global Enterprises Limited.

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.