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

Same yardstick, side by side (as of October 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.

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 SCI 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 SCI 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

Service Corporation International is North America's largest provider of funeral, cemetery, and cremation services, serving roughly 700,000 families a year under well-known brands led by Dignity Memorial. As of March 2026 it owned and operated about 1,487 funeral service locations and 503 cemeteries across 44 states, eight Canadian provinces, Washington D.C., and Puerto Rico. Its business has two main sides: atneed sales (services purchased at the time of a death) and preneed sales (arrangements bought and paid for in advance), the latter of which builds a large backlog of contracted future revenue, reported at roughly $16 billion as of the end of 2024. That backlog, funded through trusts and insurance, is the financial engine that makes SCI unusually predictable for a consumer-services company.

Full SCI 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.
• SCI drivers: Demographic tailwind and aging population; Preneed backlog and pricing power.

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; revenue rose only about 4.5% in Q2 2026. For SCI, the most immediate pressure is the normalization of funeral volumes after elevated pandemic-era death rates, which drove comparable funeral volumes down about 6% in Q1 2026 and can weigh on year-over-year comparisons.

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; SCI 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 SCI guides.

FTDR. Frontdoor trades at about 21 times trailing and 15 times forward earnings, with EV/EBITDA near 11.5x, after a 39% run in 2026 that has pushed the multiple toward the high end of its recent range. Analysts expect 2026 EPS of about $4.68 on revenue near $2.2 billion, and $5.13 in 2027. Q3 2026 results are due November 5, with consensus near $1.77 of EPS on about $648 million of revenue.

SCI. Figures are approximate and tied to the asOf date; verify live numbers before acting. At $81.68 on October 16, 2026, SCI trades at about 21 times trailing and 18 times forward earnings, a premium to the broader consumer-services group that rests on its defensive, market-leading profile and predictable preneed-backed cash flows rather than fast growth. The average analyst 12-month price target sits near ~$100, above the current price, though targets are opinions. Third-quarter results on October 28, 2026 (consensus about $0.99 per share) will show whether funeral volumes have stabilized.

Headline figures (approximate, October 2026): FTDR shows revenue (ttm) ~$2.15B (Q2 2026 up ~4.5% y/y), q2 2026 results ~$645M revenue, EPS $1.93 vs $1.76 est., net income (ttm) ~$274M (EPS ~$3.79), margins (ttm) ~56% gross, ~28% operating, ~13% net; SCI shows revenue (ttm) ~$4.37 billion (Q2 2026 ~$1.10 billion, up ~3.6% y/y), diluted eps (q2 2026) ~$0.90 vs ~$0.89 expected, net income (ttm) ~$538 million, operating margin (ttm) ~21%.

FTDR and SCI 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 SCI exposure against your real portfolio. It is not an investment adviser.