RTO vs. ULS: Which Stock Is the Better Value Option?

Core Viewpoint - The analysis indicates that Rentokil Initial PLC (RTO) is a more attractive option for value investors compared to UL Solutions Inc. (ULS), based on various valuation metrics and rankings [4][9]. Valuation Metrics - RTO holds a Value grade of B, while ULS has a Value grade of C, indicating RTO is perceived as more undervalued [3]. - RTO has a P/B ratio of 3.13, significantly lower than ULS's P/B ratio of 12.32, suggesting RTO is more favorably valued in terms of its book value [6]. - The forward P/E ratio for RTO is 20.68, compared to ULS's forward P/E of 28.99, further indicating RTO's relative undervaluation [8]. Earnings Outlook - RTO has a Zacks Rank of 2 (Buy), reflecting positive revisions to its earnings estimates, while ULS has a Zacks Rank of 3 (Hold), suggesting a less favorable earnings outlook [7]. - RTO's PEG ratio is 2.81, which is more favorable than ULS's PEG ratio of 6.63, indicating RTO's expected earnings growth is more reasonably priced [8]. Investment Recommendation - Given the combination of RTO's superior Zacks Rank, better Value grade, and more favorable valuation metrics, it is positioned as the better choice for value investors at this time [9].