ServiceMaster Global Holdings (NYSE: SERV) and Lifelock (NYSE:LOCK) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Profitability
This table compares ServiceMaster Global Holdings and Lifelock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ServiceMaster Global Holdings | 7.92% | 40.74% | 5.17% |
| Lifelock | 8.46% | 24.53% | 10.96% |
Insider and Institutional Ownership
88.8% of Lifelock shares are held by institutional investors. 1.2% of ServiceMaster Global Holdings shares are held by company insiders. Comparatively, 13.9% of Lifelock shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
ServiceMaster Global Holdings has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Lifelock has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for ServiceMaster Global Holdings and Lifelock, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ServiceMaster Global Holdings | 2 | 0 | 5 | 0 | 2.43 |
| Lifelock | 1 | 3 | 0 | 0 | 1.75 |
ServiceMaster Global Holdings currently has a consensus target price of $43.57, suggesting a potential downside of 4.39%. Lifelock has a consensus target price of $24.00, suggesting a potential upside of 0.04%. Given Lifelock’s higher probable upside, analysts clearly believe Lifelock is more favorable than ServiceMaster Global Holdings.
Valuation and Earnings
This table compares ServiceMaster Global Holdings and Lifelock’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| ServiceMaster Global Holdings | $2.84 billion | 2.14 | $665.00 million | $1.66 | 27.45 |
| Lifelock | N/A | N/A | N/A | $0.17 | 141.12 |
ServiceMaster Global Holdings has higher revenue and earnings than Lifelock. ServiceMaster Global Holdings is trading at a lower price-to-earnings ratio than Lifelock, indicating that it is currently the more affordable of the two stocks.
Summary
Lifelock beats ServiceMaster Global Holdings on 6 of the 11 factors compared between the two stocks.
ServiceMaster Global Holdings Company Profile
ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.
Lifelock Company Profile
LifeLock, Inc. provides proactive identity theft protection services for consumers and consumer risk management services for enterprises. The Company monitors certain identity-related events, such as new account openings and credit-related applications. It operates in two segments: consumer segment and an enterprise segment. The Company’s LifeLock ecosystem combines data repositories of personally identifiable information and consumer transactions, predictive analytics and a technology platform. It applies predictive analytics to the data in its repositories to provide its members and enterprise customers’ actionable intelligence that helps protect against identity theft and identity fraud. It offers its consumer services on a monthly or annual subscription basis. It provides consumer risk management services, including delivering its on-demand identity risk, identity-authentication and credit information about consumers to its enterprise customers in the daily transaction flows.
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