ServiceMaster Global (NYSE:SERV) vs. Its Rivals Critical Comparison

ServiceMaster Global (NYSE: SERV) is one of 97 publicly-traded companies in the “Business Support Services” industry, but how does it contrast to its competitors? We will compare ServiceMaster Global to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for ServiceMaster Global and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ServiceMaster Global 2 2 7 0 2.45
ServiceMaster Global Competitors 640 1893 2623 64 2.40

ServiceMaster Global currently has a consensus target price of $48.73, indicating a potential downside of 2.53%. As a group, “Business Support Services” companies have a potential upside of 1.36%. Given ServiceMaster Global’s competitors higher possible upside, analysts clearly believe ServiceMaster Global has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares ServiceMaster Global and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ServiceMaster Global $2.75 billion $155.00 million 28.73
ServiceMaster Global Competitors $1.24 billion $76.68 million 1,474.51

ServiceMaster Global has higher revenue and earnings than its competitors. ServiceMaster Global is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

ServiceMaster Global has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, ServiceMaster Global’s competitors have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Profitability

This table compares ServiceMaster Global and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ServiceMaster Global 8.16% 40.22% 5.42%
ServiceMaster Global Competitors -18.77% -180.52% 1.98%

Institutional and Insider Ownership

62.9% of shares of all “Business Support Services” companies are held by institutional investors. 1.2% of ServiceMaster Global shares are held by insiders. Comparatively, 12.6% of shares of all “Business Support Services” companies 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.

Summary

ServiceMaster Global beats its competitors on 7 of the 13 factors compared.

ServiceMaster Global Company Profile

ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.

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