Rollins vs Veralto
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KIRA’s take AI analyst
I put Rollins and Veralto side by side, using each one’s latest annual report. Here is what stands out:
- Veralto is the larger business, with $5.5B of revenue in fiscal 2025 against $3.8B for Rollins.
- Rollins grew revenue faster (11.0%, against 6.0%).
- Veralto kept more of each dollar of sales as operating profit (23.2% operating margin, against 19.3%).
- Veralto turned more of its sales into free cash flow (18.4% FCF margin, against 17.3%).
- Rollins earned a higher return on the capital invested in it (31.0%, against 28.1%).
- Investors pay more for each dollar of Rollins’s earnings: a P/E of 31.7x against 26.6x for Veralto.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Rollins
ROL
4/9
Revenue growthReturn on capitalReturn on equityShare count change
Veralto
VLTO
4/9
Operating marginNet marginFCF marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | ROL FY25 | VLTO FY25 |
|---|---|---|
| Size | ||
| Market cap | $16.5B | $25.8B |
| Revenue | $3.8B | $5.5B |
| Free cash flow | $650M | $1.0B |
| Net income | $527M | $940M |
| Growth | ||
| Revenue growth | 11.0% | 6.0% |
| 5-year growth | 11.7% | — |
| Share count change | −0.0% | 0.3% |
| Profitability | ||
| Gross margin | — | 60.0% |
| Operating margin | 19.3% | 23.2% |
| Net margin | 14.0% | 17.1% |
| FCF margin | 17.3% | 18.4% |
| Return on capital | 31.0% | 28.1% |
| Return on equity | 38.9% | 36.6% |
| Balance sheet | ||
| Net debt | $510M | $642M |
| Net debt / EBITDA | 0.6x | 0.5x |
| Dividends and buybacks | $545M | $109M |
| Valuation & quality | ||
| P/E | 31.7x | 26.6x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.