Ennis (NYSE:EBF) & Rollins (NYSE:ROL) Head to Head Analysis

Ennis (NYSE:EBF) and Rollins (NYSE:ROL) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Earnings & Valuation

This table compares Ennis and Rollins”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ennis	$392.40 million	1.36	$42.63 million	$1.53	13.81
Rollins	$3.99 billion	4.59	$526.71 million	$1.09	35.13

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

Institutional & Insider Ownership

74.3% of Ennis shares are owned by institutional investors. Comparatively, 51.8% of Rollins shares are owned by institutional investors. 3.2% of Ennis shares are owned by insiders. Comparatively, 5.8% of Rollins shares are owned 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.

Risk & Volatility

Ennis has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Rollins has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ennis	9.81%	12.58%	10.82%
Rollins	13.19%	39.43%	16.89%

Dividends

Ennis pays an annual dividend of $1.05 per share and has a dividend yield of 5.0%. Rollins pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Ennis pays out 68.6% of its earnings in the form of a dividend. Rollins pays out 73.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rollins has raised its dividend for 4 consecutive years. Ennis is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and price targets for Ennis and Rollins, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ennis	0	1	0	0	2.00
Rollins	3	10	4	1	2.17

Rollins has a consensus price target of $40.56, indicating a potential upside of 5.94%. Given Rollins’ stronger consensus rating and higher probable upside, analysts clearly believe Rollins is more favorable than Ennis.

Summary

Rollins beats Ennis on 14 of the 18 factors compared between the two stocks.

About Ennis

Ennis, Inc. manufactures and sells printed business products, including business forms, labels, envelopes, tags, presentation folders and other custom-printed materials. Its offerings serve a range of business needs, from everyday office and recordkeeping products to specialized printing applications. Founded in 1909, the company is headquartered in Midlothian, Texas, and serves customers primarily in the United States through its manufacturing and distribution operations.

About Rollins

Rollins, Inc. is a global provider of pest and termite control services for residential and commercial customers. Its services include inspections, prevention and treatment for common household and business pests, as well as termite protection, mosquito control and wildlife removal. The company operates through brands including Orkin, HomeTeam Pest Defense and Clark Pest Control. Founded in 1948, Rollins expanded into pest control with its 1964 acquisition of Orkin, which remains one of its best-known brands.