Wide-Moat Rollins Remains the Best in the Industry, but Valuation Still Rich

Rollins is the second-largest pest control firm, operating residential and commercial services primarily in North America. The industry is highly fragmented, with Rollins, Rentokil, and a few smaller global competitors, along with over 40,000 regional and local players worldwide. Rollins’ scale is a cost advantage, as its local route density and ability to spread fixed costs across a larger revenue base contribute to industry-leading margins. The value of its leading brand, Orkin, also garners an intangible asset moat as it capitalizes on industry-leading awareness to gain organic sales growth at a lower cost.