Analyzing Servicemaster Global (SERV) & Rainmaker Systems (VCTL)

Servicemaster Global (NYSE:SERV) and Rainmaker Systems (OTCMKTS:VCTL) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares Servicemaster Global and Rainmaker Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Servicemaster Global 16.61% 23.65% 5.52%
Rainmaker Systems N/A N/A N/A



Insider and Institutional Ownership

94.0% of Servicemaster Global shares are owned by institutional investors. Comparatively, 0.4% of Rainmaker Systems shares are owned by institutional investors. 1.2% of Servicemaster Global shares are owned by company insiders. Comparatively, 7.6% of Rainmaker Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Servicemaster Global has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Rainmaker Systems has a beta of -1.29, indicating that its share price is 229% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Servicemaster Global and Rainmaker Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Servicemaster Global 0 4 7 0 2.64
Rainmaker Systems 0 0 0 0 N/A

Servicemaster Global presently has a consensus target price of $45.75, suggesting a potential upside of 7.19%. Given Servicemaster Global’s higher probable upside, equities research analysts clearly believe Servicemaster Global is more favorable than Rainmaker Systems.

Earnings & Valuation

This table compares Servicemaster Global and Rainmaker Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Servicemaster Global $2.91 billion 1.99 $510.00 million $2.11 20.23
Rainmaker Systems N/A N/A N/A N/A N/A

Servicemaster Global has higher revenue and earnings than Rainmaker Systems.

Summary

Servicemaster Global beats Rainmaker Systems on 8 of the 9 factors compared between the two stocks.

About Servicemaster Global

ServiceMaster Global Holdings, Inc. provides residential and commercial services in the United States. The company operates through three segments: Terminix, American Home Shield, and the Franchise Services Group. The Terminix segment offers termite and pest control services, including termite remediation, annual termite inspection, and prevention treatments with damage claim guarantees, periodic pest control services, insulation services, mosquito control, crawlspace encapsulation, and wildlife exclusion. The American Home Shield segment provides home service plans that cover the repair or replacement of household systems and appliances, such as electrical, plumbing, central heating and air conditioning systems, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops. The Franchise Services Group segment offers disaster restoration, janitorial, residential cleaning, cabinet and wood furniture repair, and home inspection services through franchise under the ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic, and AmeriSpec brands. The company markets its services to homeowners and businesses through the Internet, direct mail, television and radio advertising, print advertisements, marketing partnerships, telemarketing, and various social media channels and through national sales teams, as well as through various participants in the residential real estate marketplace, such as real estate brokerages, financial institutions, and insurance carrier. The company was founded in 1929 and is headquartered in Memphis, Tennessee.

About Rainmaker Systems

Rainmaker Systems, Inc. provides B2B small and medium-sized business sales and service solutions. It develops Rainmaker Revenue Delivery Platform, an integrated solution that combines specialized sales and marketing services coupled with its proprietary, renewals software, and business analytics. The company's services include marketing strategy development, personalized renewals or subscription e-commerce and microsite creation and hosting, inbound and outbound e-mail, direct mail, chat, and global call center services. It also offers ViewCentral SaaS platform that provides an end-to-end solution for the management and delivery of training and certification programs for corporations. The company markets its products and services through a direct sales force to enterprises in hardware, software, software as a service, and telecommunications industries. Rainmaker Systems, Inc. was founded in 1991 and is headquartered in Campbell, California.

Receive News & Ratings for Servicemaster Global Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Servicemaster Global and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply