Financial Review: Rollins (NYSE:ROL) & Team (NYSE:TISI)

Rollins (NYSE:ROL) and Team (NYSE:TISI) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Volatility and Risk

Rollins has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Team has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Institutional & Insider Ownership

51.8% of Rollins shares are held by institutional investors. Comparatively, 46.6% of Team shares are held by institutional investors. 4.5% of Rollins shares are held by insiders. Comparatively, 3.7% of Team shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rollins and Team, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rollins	0	4	5	0	2.56
Team	0	0	0	0	0.00

Rollins currently has a consensus price target of $58.78, suggesting a potential upside of 4.60%. Given Rollins’ stronger consensus rating and higher possible upside, analysts clearly believe Rollins is more favorable than Team.

Profitability

This table compares Rollins and Team’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rollins	13.78%	37.31%	17.22%
Team	-5.97%	-753.94%	-6.18%

Valuation & Earnings

This table compares Rollins and Team”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rollins	$3.39 billion	8.04	$466.38 million	$0.99	56.76
Team	$852.27 million	0.09	-$38.27 million	($11.37)	-1.58

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

Summary

Rollins beats Team on 13 of the 14 factors compared between the two stocks.

About Rollins

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.

About Team

Team, Inc., together with its subsidiaries, provides a suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services in the United States, Canada, Europe, and internationally. It operates through Inspection and Heat Treating (IHT) and Mechanical Services (MS) segments. The IHT segment offers non-destructive evaluation and testing, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, and eddy current testing services. This segment also provides long-range guided ultrasonic, phased array ultrasonic testing, terminals and storage inspection and management program, rope access, mechanical and pipeline integrity, and heat treating services. The MS segment offers engineered composite repair, emissions control/compliance, hot tapping, valve insertion, field machining, bolted joint integrity, vapor barrier plug and weld testing, and valve management services, as well as leak repair services. Team, Inc. was founded in 1973 and is headquartered in Sugar Land, Texas.