Seek Returns logo

ERJ vs. RTO: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ERJ and RTO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Both ERJ and RTO are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

SymbolERJRTO
Company NameEmbraer S.A.Rentokil Initial plc
CountryBrazilUnited Kingdom
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseCommercial Services & Supplies
Market Capitalization10.77 billion USD12.75 billion USD
ExchangeNYSENYSE
Listing DateJuly 21, 2000November 18, 1996
Security TypeADRADR

Historical Performance

This chart compares the performance of ERJ and RTO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ERJ vs. RTO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolERJRTO
5-Day Price Return1.76%3.40%
13-Week Price Return14.32%6.80%
26-Week Price Return37.92%-6.04%
52-Week Price Return88.96%-20.71%
Month-to-Date Return-1.75%-1.55%
Year-to-Date Return41.04%-6.79%
10-Day Avg. Volume8.97M4.90M
3-Month Avg. Volume6.03M4.65M
3-Month Volatility43.48%31.57%
Beta0.170.97

Profitability

Return on Equity (TTM)

ERJ

11.78%

Aerospace & Defense Industry

Max
43.89%
Q3
22.42%
Median
12.50%
Q1
5.21%
Min
-6.24%

ERJ’s Return on Equity of 11.78% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

RTO

6.17%

Commercial Services & Supplies Industry

Max
31.93%
Q3
18.03%
Median
9.43%
Q1
6.44%
Min
-9.69%

RTO’s Return on Equity of 6.17% is in the lower quartile for the Commercial Services & Supplies industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ERJ vs. RTO: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Net Profit Margin (TTM)

ERJ

5.37%

Aerospace & Defense Industry

Max
14.54%
Q3
8.08%
Median
6.17%
Q1
2.49%
Min
-1.63%

ERJ’s Net Profit Margin of 5.37% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

RTO

5.49%

Commercial Services & Supplies Industry

Max
17.53%
Q3
9.01%
Median
5.20%
Q1
2.75%
Min
-2.31%

RTO’s Net Profit Margin of 5.49% is aligned with the median group of its peers in the Commercial Services & Supplies industry. This indicates its ability to convert revenue into profit is typical for the sector.

ERJ vs. RTO: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Operating Profit Margin (TTM)

ERJ

11.14%

Aerospace & Defense Industry

Max
16.63%
Q3
10.38%
Median
8.29%
Q1
6.21%
Min
0.95%

An Operating Profit Margin of 11.14% places ERJ in the upper quartile for the Aerospace & Defense industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

RTO

9.93%

Commercial Services & Supplies Industry

Max
23.43%
Q3
12.19%
Median
8.10%
Q1
3.18%
Min
-6.03%

RTO’s Operating Profit Margin of 9.93% is around the midpoint for the Commercial Services & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.

ERJ vs. RTO: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Profitability at a Glance

SymbolERJRTO
Return on Equity (TTM)11.78%6.17%
Return on Assets (TTM)3.17%2.38%
Net Profit Margin (TTM)5.37%5.49%
Operating Profit Margin (TTM)11.14%9.93%
Gross Profit Margin (TTM)18.48%--

Financial Strength

Current Ratio (MRQ)

ERJ

1.33

Aerospace & Defense Industry

Max
3.09
Q3
1.98
Median
1.23
Q1
1.03
Min
0.02

ERJ’s Current Ratio of 1.33 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

RTO

1.12

Commercial Services & Supplies Industry

Max
2.94
Q3
1.89
Median
1.38
Q1
0.87
Min
0.53

RTO’s Current Ratio of 1.12 aligns with the median group of the Commercial Services & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.

ERJ vs. RTO: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ERJ

0.70

Aerospace & Defense Industry

Max
1.70
Q3
1.04
Median
0.68
Q1
0.41
Min
0.00

ERJ’s Debt-to-Equity Ratio of 0.70 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

RTO

1.14

Commercial Services & Supplies Industry

Max
1.67
Q3
1.08
Median
0.73
Q1
0.36
Min
0.00

RTO’s leverage is in the upper quartile of the Commercial Services & Supplies industry, with a Debt-to-Equity Ratio of 1.14. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ERJ vs. RTO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Interest Coverage Ratio (TTM)

ERJ

36.57

Aerospace & Defense Industry

Max
36.57
Q3
19.90
Median
7.04
Q1
2.40
Min
-7.63

ERJ’s Interest Coverage Ratio of 36.57 is in the upper quartile for the Aerospace & Defense industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

RTO

5.22

Commercial Services & Supplies Industry

Max
24.70
Q3
12.37
Median
7.16
Q1
2.69
Min
-10.97

RTO’s Interest Coverage Ratio of 5.22 is positioned comfortably within the norm for the Commercial Services & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.

ERJ vs. RTO: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Financial Strength at a Glance

SymbolERJRTO
Current Ratio (MRQ)1.331.12
Quick Ratio (MRQ)0.591.03
Debt-to-Equity Ratio (MRQ)0.701.14
Interest Coverage Ratio (TTM)36.575.22

Growth

Revenue Growth

ERJ vs. RTO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ERJ vs. RTO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ERJ

0.09%

Aerospace & Defense Industry

Max
2.03%
Q3
1.22%
Median
0.43%
Q1
0.00%
Min
0.00%

ERJ’s Dividend Yield of 0.09% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

RTO

3.35%

Commercial Services & Supplies Industry

Max
3.44%
Q3
2.30%
Median
1.37%
Q1
0.63%
Min
0.00%

With a Dividend Yield of 3.35%, RTO offers a more attractive income stream than most of its peers in the Commercial Services & Supplies industry, signaling a strong commitment to shareholder returns.

ERJ vs. RTO: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Dividend Payout Ratio (TTM)

ERJ

11.51%

Aerospace & Defense Industry

Max
83.87%
Q3
49.90%
Median
16.48%
Q1
0.00%
Min
0.00%

ERJ’s Dividend Payout Ratio of 11.51% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RTO

93.97%

Commercial Services & Supplies Industry

Max
137.88%
Q3
72.93%
Median
40.45%
Q1
23.31%
Min
0.00%

RTO’s Dividend Payout Ratio of 93.97% is in the upper quartile for the Commercial Services & Supplies industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ERJ vs. RTO: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Dividend at a Glance

SymbolERJRTO
Dividend Yield (TTM)0.09%3.35%
Dividend Payout Ratio (TTM)11.51%93.97%

Valuation

Price-to-Earnings Ratio (TTM)

ERJ

27.23

Aerospace & Defense Industry

Max
65.97
Q3
54.11
Median
34.53
Q1
23.66
Min
0.00

ERJ’s P/E Ratio of 27.23 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

RTO

28.07

Commercial Services & Supplies Industry

Max
57.20
Q3
37.10
Median
22.38
Q1
16.35
Min
0.00

RTO’s P/E Ratio of 28.07 is within the middle range for the Commercial Services & Supplies industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ERJ vs. RTO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Price-to-Sales Ratio (TTM)

ERJ

1.46

Aerospace & Defense Industry

Max
8.07
Q3
4.49
Median
2.42
Q1
1.39
Min
0.00

ERJ’s P/S Ratio of 1.46 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

RTO

1.54

Commercial Services & Supplies Industry

Max
4.64
Q3
2.28
Median
0.97
Q1
0.64
Min
0.00

RTO’s P/S Ratio of 1.54 aligns with the market consensus for the Commercial Services & Supplies industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ERJ vs. RTO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Price-to-Book Ratio (MRQ)

ERJ

3.13

Aerospace & Defense Industry

Max
13.67
Q3
7.92
Median
4.65
Q1
2.68
Min
0.82

ERJ’s P/B Ratio of 3.13 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

RTO

1.69

Commercial Services & Supplies Industry

Max
6.71
Q3
4.38
Median
2.39
Q1
1.57
Min
0.43

RTO’s P/B Ratio of 1.69 is within the conventional range for the Commercial Services & Supplies industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ERJ vs. RTO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Commercial Services & Supplies industry benchmarks.

Valuation at a Glance

SymbolERJRTO
Price-to-Earnings Ratio (TTM)27.2328.07
Price-to-Sales Ratio (TTM)1.461.54
Price-to-Book Ratio (MRQ)3.131.69
Price-to-Free Cash Flow Ratio (TTM)9.9413.70