WPP (WPP) Competitors

WPP (LON:WPP) and Rentokil Initial (LON:RTO) are both mid-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, media sentiment, institutional ownership, dividends, profitability and risk.

Does the media refer more to WPP or RTO?

In the previous week, Rentokil Initial had 2 more articles in the media than WPP. MarketBeat recorded 6 mentions for Rentokil Initial and 4 mentions for WPP. WPP's average media sentiment score of 0.46 beat Rentokil Initial's score of 0.12 indicating that WPP is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
WPP	1 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Rentokil Initial	0 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has stronger valuation and earnings, WPP or RTO?

Rentokil Initial has lower revenue, but higher earnings than WPP. WPP 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
WPP	£14.18B	0.28	£203.92M	£0.35	1,068.21
Rentokil Initial	£6.92B	1.43	£389.49M	£0.13	3,071.74

Is WPP or RTO more profitable?

Rentokil Initial has a net margin of 7.25% compared to WPP's net margin of 1.37%. Rentokil Initial's return on equity of 9.50% beat WPP's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
WPP	1.37%	5.92%	1.53%
Rentokil Initial	7.25%	9.50%	4.11%

Is WPP or RTO a better dividend stock?

WPP pays an annual dividend of GBX 0.39 per share and has a dividend yield of 0.1%. Rentokil Initial pays an annual dividend of GBX 0.12 per share and has a dividend yield of 0.0%. WPP pays out 113.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rentokil Initial pays out 92.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Do analysts rate WPP or RTO?

WPP presently has a consensus price target of GBX 480, indicating a potential upside of 29.87%. Rentokil Initial has a consensus price target of GBX 397.25, indicating a potential upside of 0.77%. Given WPP's stronger consensus rating and higher probable upside, research analysts clearly believe WPP is more favorable than Rentokil Initial.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WPP	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50
Rentokil Initial	1 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33

Which has more risk & volatility, WPP or RTO?

WPP has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Rentokil Initial has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Do institutionals & insiders believe in WPP or RTO?

68.3% of WPP shares are owned by institutional investors. Comparatively, 78.6% of Rentokil Initial shares are owned by institutional investors. 2.0% of WPP shares are owned by company insiders. Comparatively, 2.8% of Rentokil Initial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Rentokil Initial beats WPP on 11 of the 18 factors compared between the two stocks.