Unifirst Corporation (NYSE: UNF) and ServiceMaster Global Holdings (NYSE:SERV) are both mid-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Earnings & Valuation
This table compares Unifirst Corporation and ServiceMaster Global Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Unifirst Corporation||$1.55 billion||1.85||$249.49 million||$5.41||26.19|
|ServiceMaster Global Holdings||$2.84 billion||2.18||$665.00 million||$1.66||28.01|
ServiceMaster Global Holdings has higher revenue and earnings than Unifirst Corporation. Unifirst Corporation is trading at a lower price-to-earnings ratio than ServiceMaster Global Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Unifirst Corporation and ServiceMaster Global Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ServiceMaster Global Holdings||7.92%||40.74%||5.17%|
Insider & Institutional Ownership
73.5% of Unifirst Corporation shares are held by institutional investors. 6.7% of Unifirst Corporation shares are held by insiders. Comparatively, 1.2% of ServiceMaster Global Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Unifirst Corporation has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, ServiceMaster Global Holdings has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Unifirst Corporation pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. ServiceMaster Global Holdings does not pay a dividend. Unifirst Corporation pays out 2.8% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Unifirst Corporation and ServiceMaster Global Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ServiceMaster Global Holdings||2||0||5||0||2.43|
Unifirst Corporation presently has a consensus price target of $163.00, suggesting a potential upside of 15.03%. ServiceMaster Global Holdings has a consensus price target of $43.57, suggesting a potential downside of 6.30%. Given Unifirst Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Unifirst Corporation is more favorable than ServiceMaster Global Holdings.
About Unifirst Corporation
UniFirst Corporation is a provider of workplace uniforms and protective work wear clothing in the United States. The Company designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. It operates in six segments: the US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The Company also rents and sells industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services, and other safety supplies. It also decontaminates and cleans work clothes, which has been exposed to radioactive materials and service special cleanroom protective wear and facilities.
About ServiceMaster Global Holdings
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.
Receive News & Ratings for Unifirst Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Unifirst Corporation and related companies with MarketBeat.com's FREE daily email newsletter.