Head-To-Head Review: Terminix Global (NYSE:TMX) & Sodexo (OTCMKTS:SDXAY)

Terminix Global (NYSE:TMX) and Sodexo (OTCMKTS:SDXAY) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

0.2% of Sodexo shares are owned by institutional investors. 2.3% of Terminix Global shares are owned by company insiders. Comparatively, 1.0% of Sodexo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Terminix Global and Sodexo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terminix Global 0 1 1 0 2.50
Sodexo 4 6 7 0 2.18

Terminix Global currently has a consensus price target of $55.50, suggesting a potential upside of 9.66%. Given Terminix Global’s stronger consensus rating and higher probable upside, equities analysts plainly believe Terminix Global is more favorable than Sodexo.

Earnings & Valuation

This table compares Terminix Global and Sodexo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Terminix Global $1.96 billion 3.32 $551.00 million $0.95 53.27
Sodexo $22.58 billion 0.64 -$350.91 million N/A N/A

Terminix Global has higher earnings, but lower revenue than Sodexo.

Profitability

This table compares Terminix Global and Sodexo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terminix Global 28.48% 6.32% 3.09%
Sodexo N/A N/A N/A

Volatility & Risk

Terminix Global has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Sodexo has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Summary

Terminix Global beats Sodexo on 8 of the 12 factors compared between the two stocks.

About Terminix Global

Terminix Global Holdings, Inc. provides residential and commercial termite and pest management services. It offers termite and pest control services, including termite remediation, annual termite inspection, and prevention treatments with termite damage repair guarantees, periodic pest control services, insulation services, crawlspace encapsulation, wildlife exclusion, and disinfection services. The company serves under the Terminix, Assured Environments, Copesan, Gregory, McCloud, Nomor AB, and Pelias brands. It markets its services to homeowners and businesses through digital marketing, television and radio advertising, print advertisements, marketing partnerships, door-to-door summer sales programs, telemarketing, and various social media channels and through national, regional and local sales teams. The company was formerly known as ServiceMaster Global Holdings, Inc. and changed its name to Terminix Global Holdings, Inc. in October 2020. Terminix Global Holdings, Inc. was founded in 1929 and is headquartered in Memphis, Tennessee.

About Sodexo

Sodexo S.A. develops, manages, and delivers on-site, benefits and rewards, and personal and home services worldwide. It provides various on-site services, including business and administration, which covers corporate, energy and resources, government and agencies, sports and leisure, and other customers; healthcare and seniors; and education services comprising schools and universities. The company also provides food services; benefits and rewards services, such as employee benefits, incentive and recognition programs, employee mobility, expense management, and public benefits; and personal and home services, including childcare, concierge, and in-home care services. In addition, it offers facility management services, including cleaning, front of house, security, ground maintenance, mailroom, document management, waste management, laundry, transportation, general repairs, technical maintenance, asset management, energy management, and project management services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

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