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 contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, media sentiment, valuation, earnings, profitability and institutional ownership.

Do analysts recommend WPP or RTO?

WPP presently has a consensus price target of GBX 715, indicating a potential upside of 77.24%. Rentokil Initial has a consensus price target of GBX 435, indicating a potential upside of 19.18%. Given WPP's stronger consensus rating and 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)	3 Buy rating(s)	0 Strong Buy rating(s)	2.75
Rentokil Initial	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Does the media prefer WPP or RTO?

In the previous week, Rentokil Initial had 9 more articles in the media than WPP. MarketBeat recorded 10 mentions for Rentokil Initial and 1 mentions for WPP. Rentokil Initial's average media sentiment score of 0.42 beat WPP's score of 0.00 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)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Rentokil Initial	0 Very Positive mention(s)	6 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

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%

Which has more volatility and risk, 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.

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	£14.89B	0.29	£203.92M	£18.93	21.31
Rentokil Initial	£5.38B	1.70	£389.49M	£15.59	23.41

Is WPP or RTO a better dividend stock?

WPP pays an annual dividend of GBX 39 per share and has a dividend yield of 9.7%. Rentokil Initial pays an annual dividend of GBX 9 per share and has a dividend yield of 2.5%. WPP pays out 206.0% 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 57.7% of its earnings in the form of a dividend.

Do institutionals and insiders believe in WPP or RTO?

65.3% of WPP shares are owned by institutional investors. Comparatively, 99.0% of Rentokil Initial shares are owned by institutional investors. 0.2% of WPP shares are owned by company insiders. Comparatively, 0.3% of Rentokil Initial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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