PAYX vs. RTO: Paychex vs. Rentokil Initial Stock Comparison
How do Paychex (PAYX) and Rentokil Initial (RTO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Paychex (PAYX) and Rentokil Initial (RTO) both fall under the Commercial & Professional Services industry group, but PAYX is classified in Professional Services while RTO is classified in Commercial Services & Supplies.
Paychex (PAYX) trades as ordinary local shares, while Rentokil Initial (RTO) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | PAYX | RTO |
|---|---|---|
| Name | Paychex Inc. | Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) |
| Country/Region | United States | United Kingdom |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Commercial & Professional Services | Commercial & Professional Services |
| GICS Industry | Professional Services | Commercial Services & Supplies |
| GICS Sub-Industry | Human Resource & Employment Services | Environmental & Facilities Services |
| Market Capitalization | 41.67 billion USD | 11.87 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | August 26, 1983 | November 18, 1996 |
| Security Type | Common Stock | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | PAYX | RTO |
|---|---|---|
| Total Return (1Y) | 7.76% | -10.02% |
| Total Return (3Y, Annualized) | 4.26% | -1.88% |
| Total Return (5Y, Annualized) | 1.96% | -8.85% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | PAYX | RTO |
|---|---|---|
| Volatility (1Y, Annualized) | 30.84% | 33.85% |
| Beta (5Y) | 0.79 | 0.98 |
| Max Drawdown (5Y) | -44.95% | -50.93% |
| Avg. Volume (3M) | 2.88M | 1.74M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | PAYX | RTO |
|---|---|---|
| Sharpe Ratio (1Y) | 0.11 | -0.42 |
| Sortino Ratio (1Y) | 0.16 | -0.57 |
Profitability
ROE (TTM)
Paychex (PAYX) at 47.06% sits in the top ROE quartile, while Rentokil Initial (RTO) at 5.97% is closer to the peer norm — stronger capital efficiency for PAYX.
PAYX
Commercial & Professional Services industry group
47.06%
- PAYX
- 47.06%
- Max
- 47.06%
- Q3
- 25.43%
- Median
- 14.11%
- Q1
- 3.92%
- Min
- -20.15%
RTO
Commercial & Professional Services industry group
5.97%
- Max
- 47.06%
- Q3
- 25.43%
- Median
- 14.11%
- RTO
- 5.97%
- Q1
- 3.92%
- Min
- -20.15%
Net Margin (TTM)
Paychex (PAYX) at 27.35% converts revenue to bottom-line profit above its industry’s benchmark range, while Rentokil Initial (RTO) at 6.70% keeps roughly the typical share for its industry.
PAYX
Commercial & Professional Services industry group
27.35%
- PAYX
- 27.35%
- Max
- 23.28%
- Q3
- 11.35%
- Median
- 5.65%
- Q1
- 0.87%
- Min
- -8.60%
RTO
Commercial & Professional Services industry group
6.70%
- Max
- 23.28%
- Q3
- 11.35%
- RTO
- 6.70%
- Median
- 5.65%
- Q1
- 0.87%
- Min
- -8.60%
Operating Margin (TTM)
Paychex (PAYX) at 38.50% operates in the top operating margin quartile, ahead of Rentokil Initial (RTO) at 12.79%, which runs around its industry’s norm.
PAYX
Commercial & Professional Services industry group
38.50%
- PAYX
- 38.50%
- Max
- 38.50%
- Q3
- 18.84%
- Median
- 10.40%
- Q1
- 5.59%
- Min
- -12.00%
RTO
Commercial & Professional Services industry group
12.79%
- Max
- 38.50%
- Q3
- 18.84%
- RTO
- 12.79%
- Median
- 10.40%
- Q1
- 5.59%
- Min
- -12.00%
Profitability Metrics
| Metric | PAYX | RTO |
|---|---|---|
| ROE (TTM) | 47.06% | 5.97% |
| ROA (TTM) | 10.19% | 4.00% |
| Net Margin (TTM) | 27.35% | 6.70% |
| Operating Margin (TTM) | 38.50% | 12.79% |
| Gross Margin (TTM) | 74.39% | 14.01% |
Growth
Revenue Growth
Paychex (PAYX) at 16.88% sits in the top revenue growth quartile, while Rentokil Initial (RTO) at 4.40% is closer to the peer norm — faster top-line expansion for PAYX.
EPS Growth
Rentokil Initial (RTO) at 21.70% sits in the top EPS growth quartile, while Paychex (PAYX) at 6.77% is closer to the peer norm — faster per-share earnings growth for RTO.
Growth Metrics
| Metric | PAYX | RTO |
|---|---|---|
| Revenue Growth (YoY) | 16.88% | 4.40% |
| Revenue Growth (3Y CAGR) | 9.15% | 15.40% |
| EPS Growth (YoY) | 6.77% | 21.70% |
| EPS Growth (3Y CAGR) | 4.38% | 10.00% |
Financial Strength
Current Ratio (MRQ)
Paychex (PAYX) at 1.28 keeps current ratio within its industry’s typical mid-range, while Rentokil Initial (RTO) at 1.06 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for RTO.
PAYX
Commercial & Professional Services industry group
1.28
- Max
- 3.63
- Q3
- 2.14
- Median
- 1.55
- PAYX
- 1.28
- Q1
- 1.09
- Min
- 0.45
RTO
Commercial & Professional Services industry group
1.06
- Max
- 3.63
- Q3
- 2.14
- Median
- 1.55
- Q1
- 1.09
- RTO
- 1.06
- Min
- 0.45
Debt / Equity (MRQ)
Both Paychex (PAYX) at 1.25 and Rentokil Initial (RTO) at 1.11 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
PAYX
Commercial & Professional Services industry group
1.25
- Max
- 2.37
- Q3
- 1.25
- PAYX
- 1.25
- Median
- 0.88
- Q1
- 0.35
- Min
- 0.00
RTO
Commercial & Professional Services industry group
1.11
- Max
- 2.37
- Q3
- 1.25
- RTO
- 1.11
- Median
- 0.88
- Q1
- 0.35
- Min
- 0.00
Financial Strength Metrics
| Metric | PAYX | RTO |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 1.06 |
| Debt / Equity (MRQ) | 1.25 | 1.11 |
| Net Debt / EBITDA | 1.20 | 2.93 |
Dividends
Dividend Yield (TTM)
Paychex (PAYX) at 3.80% delivers top-quartile income for its industry, while Rentokil Initial (RTO) at 0.53% pays a more typical yield — both are credible income propositions, PAYX the richer one.
PAYX
Commercial & Professional Services industry group
3.80%
- Max
- 4.33%
- PAYX
- 3.80%
- Q3
- 1.80%
- Median
- 0.60%
- Q1
- 0.00%
- Min
- 0.00%
RTO
Commercial & Professional Services industry group
0.53%
- Max
- 4.33%
- Q3
- 1.80%
- Median
- 0.60%
- RTO
- 0.53%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Paychex (PAYX) at 90.08% and Rentokil Initial (RTO) at 97.56% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
PAYX
Commercial & Professional Services industry group
90.08%
- Max
- 99.58%
- PAYX
- 90.08%
- Q3
- 41.99%
- Median
- 17.27%
- Q1
- 0.00%
- Min
- -17.94%
RTO
Commercial & Professional Services industry group
97.56%
- Max
- 99.58%
- RTO
- 97.56%
- Q3
- 41.99%
- Median
- 17.27%
- Q1
- 0.00%
- Min
- -17.94%
Dividend Metrics
| Metric | PAYX | RTO |
|---|---|---|
| Dividend Yield (TTM) | 3.80% | 0.53% |
| Dividend Payout Ratio (TTM) | 90.08% | 97.56% |
Valuation
P/E Ratio (TTM)
Paychex (PAYX) at 23.23 is near its industry’s usual P/E ratio, while Rentokil Initial (RTO) at 37.48 sits in the richer quartile — RTO needs stronger growth or earnings quality to justify the premium.
PAYX
Commercial & Professional Services industry group
23.23
- Max
- 49.47
- Q3
- 33.76
- Median
- 24.16
- PAYX
- 23.23
- Q1
- 16.01
- Min
- 1.89
RTO
Commercial & Professional Services industry group
37.48
- Max
- 49.47
- RTO
- 37.48
- Q3
- 33.76
- Median
- 24.16
- Q1
- 16.01
- Min
- 1.89
P/S Ratio (TTM)
Rentokil Initial (RTO) at 1.66 is priced about in line with its industry on P/S ratio, while Paychex (PAYX) at 6.31 sits in the pricier quartile — PAYX costs more per dollar of sales.
PAYX
Commercial & Professional Services industry group
6.31
- Max
- 7.17
- PAYX
- 6.31
- Q3
- 3.35
- Median
- 1.33
- Q1
- 0.69
- Min
- 0.11
RTO
Commercial & Professional Services industry group
1.66
- Max
- 7.17
- Q3
- 3.35
- RTO
- 1.66
- Median
- 1.33
- Q1
- 0.69
- Min
- 0.11
P/B Ratio (MRQ)
Rentokil Initial (RTO) at 2.16 is valued about in line with its industry on P/B ratio, while Paychex (PAYX) at 11.25 carries an above-peer premium to book — PAYX is pricier on assets.
PAYX
Commercial & Professional Services industry group
11.25
- PAYX
- 11.25
- Max
- 11.25
- Q3
- 6.08
- Median
- 2.92
- Q1
- 1.55
- Min
- -2.78
RTO
Commercial & Professional Services industry group
2.16
- Max
- 11.25
- Q3
- 6.08
- Median
- 2.92
- RTO
- 2.16
- Q1
- 1.55
- Min
- -2.78
Valuation Metrics
| Metric | PAYX | RTO |
|---|---|---|
| P/E Ratio (TTM) | 23.23 | 37.48 |
| P/S Ratio (TTM) | 6.31 | 1.66 |
| P/B Ratio (MRQ) | 11.25 | 2.16 |
| Free Cash Flow Yield (TTM) | 4.53% | 8.85% |