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 analyst recommendations, valuation, profitability, dividends, institutional ownership, media sentiment, risk, community ranking and earnings.

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 insiders & institutionals believe in RTO or CPI?

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

Does the MarketBeat Community prefer RTO or CPI?

Rentokil Initial received 146 more outperform votes than Capita when rated by MarketBeat users. Likewise, 65.70% of users gave Rentokil Initial an outperform vote while only 52.89% of users gave Capita an outperform vote.

Company	Underperform	Outperform
Rentokil Initial	Outperform Votes 613 65.70%	Underperform Votes 320 34.30%
Capita	Outperform Votes 467 52.89%	Underperform Votes 416 47.11%

Which has higher 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	1.63	£389.49M	£15.59	22.44
Capita	£2.48B	1.78	-£40.73M	-£2.41	-108.10

Does the media refer more to RTO or CPI?

In the previous week, Capita had 2 more articles in the media than Rentokil Initial. MarketBeat recorded 2 mentions for Capita and 0 mentions for Rentokil Initial. Rentokil Initial's average media sentiment score of 1.15 beat Capita's score of 0.25 indicating that Rentokil Initial is being referred to more favorably in the media.

Company	Overall Sentiment
Rentokil Initial	Positive
Capita	Neutral

Do analysts rate RTO or CPI?

Rentokil Initial presently has a consensus target price of GBX 488.33, indicating a potential upside of 39.60%. Capita has a consensus target price of GBX 2,200, indicating a potential upside of 742.92%. Given Capita's higher possible upside, analysts clearly 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)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

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 2.6%. Capita pays an annual dividend of GBX 32 per share and has a dividend yield of 12.3%. 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.

Which has more volatility & risk, RTO or CPI?

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

Summary

Rentokil Initial beats Capita on 13 of the 20 factors compared between the two stocks.