WallStSmart

Medirom Healthcare Technologies Inc (MRM)vsRollins Inc (ROL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Medirom Healthcare Technologies Inc generates 114% more annual revenue ($8.07B vs $3.76B). ROL leads profitability with a 14.0% profit margin vs 0.5%. MRM trades at a lower P/E of 3.3x. ROL earns a higher WallStSmart Score of 52/100 (C-).

MRM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 4.5Value: 8.3Quality: 3.5
Piotroski: 6/9Altman Z: 0.99

ROL

Buy

52

out of 100

Grade: C-

Growth: 6.7Profit: 8.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRMUndervalued (+92.5%)

Margin of Safety

+92.5%

Fair Value

$17.32

Current Price

$1.13

$16.19 discount

UndervaluedFair: $17.32Overvalued
ROLSignificantly Overvalued (-165.8%)

Margin of Safety

-165.8%

Fair Value

$24.68

Current Price

$53.48

$28.80 premium

UndervaluedFair: $24.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRM3 strengths · Avg: 9.3/10
P/E RatioValuation
3.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
53.2%10/10

Every $100 of equity generates 53 in profit

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

ROL1 strengths · Avg: 10.0/10
Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

Areas to Watch

MRM4 concerns · Avg: 2.5/10
Market CapQuality
$9.64M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Revenue GrowthGrowth
-6.7%2/10

Revenue declined 6.7%

Free Cash FlowQuality
$-2.48M2/10

Negative free cash flow — burning cash

ROL4 concerns · Avg: 2.8/10
Price/BookValuation
18.7x4/10

Trading at 18.7x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.842/10

Expensive relative to growth rate

P/E RatioValuation
49.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : MRM

The strongest argument for MRM centers on P/E Ratio, Return on Equity, EPS Growth.

Bull Case : ROL

The strongest argument for ROL centers on Return on Equity.

Bear Case : MRM

The primary concerns for MRM are Market Cap, Profit Margin, Revenue Growth. Debt-to-equity of 8.84 is elevated, increasing financial risk. Thin 0.5% margins leave little buffer for downturns.

Bear Case : ROL

The primary concerns for ROL are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 49.1x leaves little room for execution misses.

Key Dynamics to Monitor

MRM carries more volatility with a beta of 1.01 — expect wider price swings.

ROL is growing revenue faster at 9.7% — sustainability is the question.

ROL generates stronger free cash flow (159M), providing more financial flexibility.

Monitor PERSONAL SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ROL scores higher overall (52/100 vs 39/100). MRM offers better value entry with a 92.5% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Medirom Healthcare Technologies Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

MEDIROM Healthcare Technologies Inc. provides comprehensive healthcare services in Japan. The company is headquartered in Tokyo, Japan.

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Rollins Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

Rollins, Inc. is a North American consumer and commercial services company.

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