Capita (CPI) Competitors

Rentokil Initial (LON:RTO) and Capita (LON:CPI) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, media sentiment, earnings and valuation.

Which has better earnings & valuation, RTO or CPI?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rentokil Initial	£5.38B	1.70	£389.49M	£15.59	23.41
Capita	£2.48B	1.96	-£40.73M	-£2.41	-119.28

Does the media refer more to RTO or CPI?

In the previous week, Rentokil Initial had 10 more articles in the media than Capita. MarketBeat recorded 10 mentions for Rentokil Initial and 0 mentions for Capita. Rentokil Initial's average media sentiment score of 0.42 beat Capita's score of 0.00 indicating that Rentokil Initial is being referred to more favorably in the media.

Company	Overall Sentiment
Rentokil Initial	Neutral
Capita	Neutral

Do analysts prefer RTO or CPI?

Rentokil Initial presently has a consensus target price of GBX 435, indicating a potential upside of 19.18%. Capita has a consensus target price of GBX 405, indicating a potential upside of 40.63%. Given Capita's higher possible upside, analysts plainly believe Capita is more favorable than Rentokil Initial.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rentokil Initial	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67
Capita	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50

Which has more risk and volatility, RTO or CPI?

Rentokil Initial has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Capita has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Is RTO or CPI more profitable?

Rentokil Initial has a net margin of 7.25% compared to Capita's net margin of -1.64%. Rentokil Initial's return on equity of 9.50% beat Capita's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Rentokil Initial	7.25%	9.50%	4.11%
Capita	-1.64%	-28.00%	1.57%

Do institutionals & insiders hold more shares of RTO or CPI?

99.0% of Rentokil Initial shares are held by institutional investors. Comparatively, 61.7% of Capita shares are held by institutional investors. 0.3% of Rentokil Initial shares are held by insiders. Comparatively, 4.6% of Capita shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Is RTO or CPI a better dividend stock?

Rentokil Initial pays an annual dividend of GBX 9 per share and has a dividend yield of 2.5%. Capita pays an annual dividend of GBX 32 per share and has a dividend yield of 11.1%. Rentokil Initial pays out 57.7% of its earnings in the form of a dividend. Capita pays out -1,325.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Capita is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Rentokil Initial beats Capita on 12 of the 18 factors compared between the two stocks.