WPP (WPP) Competitors

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

Does the media refer more to WPP or RTO?

In the previous week, WPP had 2 more articles in the media than Rentokil Initial. MarketBeat recorded 3 mentions for WPP and 1 mentions for Rentokil Initial. Rentokil Initial's average media sentiment score of 0.74 beat WPP's score of 0.09 indicating that Rentokil Initial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
WPP	0 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Rentokil Initial	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, WPP or RTO?

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

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%

Do analysts prefer WPP or RTO?

WPP currently has a consensus target price of GBX 480, indicating a potential upside of 20.21%. Rentokil Initial has a consensus target price of GBX 435, indicating a potential upside of 16.28%. Given WPP's higher probable upside, equities analysts plainly 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	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00

Which has better earnings and valuation, 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	0.30	£203.92M	£0.35	1,154.05
Rentokil Initial	£6.92B	1.36	£389.49M	£0.13	2,915.12

Do insiders & institutionals have more ownership in WPP or RTO?

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

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.

Summary

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