FTDR vs ROL: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: FTDR is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FTDR and ROL share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FTDR and ROL exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Frontdoor, Inc. (Nasdaq: FTDR) is the largest provider of home service plans (home warranties) in the United States, operating primarily under the American Home Shield brand along with HSA, Landmark, OneGuard, and the 2-10 Home Buyers Warranty business it acquired in December 2024. Its core product is a recurring subscription that covers repair or replacement of major home systems and appliances, fulfilled through a nationwide contractor network. The company also runs the on-demand Frontdoor app and newer non-warranty offerings such as an HVAC Upgrade Program that widen its revenue beyond the traditional plan.

Full FTDR guide

Rollins, Inc. is a US-based consumer and commercial services company that provides pest and termite control through a family of brands led by Orkin, alongside HomeTeam Pest Defense, Clark Pest Control, Fox Pest Control, Critter Control, Trutech, and many others across the US, Canada, Australia, and other markets. The business is built on recurring, contract-based service routes: residential pest control, commercial pest control, and termite and ancillary services, with a large share of revenue tied to repeat visits that give it visibility and pricing power. Rollins grows both organically (price and new customers) and through a steady stream of small tuck-in acquisitions of local operators in a highly fragmented industry.

Full ROL guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• FTDR drivers: Return to member growth; Non-warranty and new revenue streams.
• ROL drivers: Recurring, non-discretionary demand; Acquisition roll-up in a fragmented market.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The core home warranty category is mature and estimated at only a few billion dollars in annual revenue, so organic growth is hard to sustain. For ROL, valuation is the central risk: ROL trades at a premium earnings multiple (well above the broader market) that already assumes years of consistent growth, so any slowdown could compress the multiple sharply.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick FTDR if you believe its drivers more; ROL if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FTDR and ROL guides.

FTDR. Full-year 2025 was a record, with revenue up about 14% (aided by the 2-10 acquisition) and roughly 55% gross margin. Q1 2026 revenue rose about 6% to $451 million with net income of $41 million, and management reaffirmed full-year guidance. The stock re-rated substantially through the first half of 2026, pushing the P/E toward the high end of its recent range.

ROL. Rollins grew FY2025 revenue about 11% to roughly $3.8 billion, with organic growth near 7% and the rest from acquisitions, and carried that momentum into Q1 2026 with about 10% growth. Profitability remains high but operating margin dipped year over year (to around 16% in Q1 2026) on acquisition mix and cost inflation. The stock trades at a premium valuation, with a trailing P/E in the high 30s and a forward P/E in the low 30s, reflecting its recurring-revenue quality.

Headline figures (approximate, JULY 2026): FTDR shows revenue (fy2025) ~$2.09B, net income (fy2025) ~$255M, adjusted ebitda (fy2025) ~$553M, 2026 revenue guidance ~$2.15B to $2.19B; ROL shows revenue (ttm) ~$3.9B, fy2025 revenue ~$3.8B (+11%), q1 2026 revenue ~$906M (+10.2%), market cap ~$20B.

FTDR and ROL are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FTDR and ROL exposure against your real portfolio. It is not an investment adviser.