In this article, we will discuss the 5 largest pest control companies in USA. If you want to see more companies in this selection, go to the 16 Largest Pest Control Companies in USA.
5. The Scotts Miracle-Gro Company (NYSE:SMG)
Market Capitalization: $4.175 billion
The Scotts Miracle-Gro Company (NYSE:SMG) is a Marysville, Ohio-based provider of gardening and pest control products founded by Horace Hagedorn in 1951.
Ortho, RoundUp, and Tomcat are some of the brands leading the pest and weed control segment of the business. The Scotts Miracle-Gro Company (NYSE:SMG) is renowned for its comprehensive approach towards addressing the requirements of gardeners and farmers. The company’s R&D department is the largest in the world and is exclusively committed to developing products for lawns, gardens, and hydroponic cultivation. With over 100 scientists from diverse fields such as soil science and molecular biology and more than 900 acres of land in three states, The Scotts Miracle-Gro Company (NYSE:SMG) cultivates a wide variety of plants ranging from tomatoes to turfgrass.
Madison Funds shared its outlook on The Scotts Miracle-Gro Company (NYSE:SMG) in its Q4 2022 investor letter. Here’s what the firm said:
“Stock selection was the poorest for us in this sector. Two stocks in particular – Hain Celestial (HAIN) and The Scotts Miracle-Gro Company (NYSE:SMG) – while big winners for us in 2020 and 2021, hurt the portfolio in 2022.
While both companies were so-called COVID beneficiaries (businesses that benefited from consumers staying home and spending on their homes during COVID), we felt they possessed certain additional drivers that would maintain their fundamentals into 2022 and beyond.
Scott’s Miracle-Gro is arguably one of the great American franchises. The brand is synonymous with lawn care and pest control, has a dominant market share (~60%) with historically-impressive ~30% cash flow margins, and has the country’s largest Cannabis supply business. Scotts’ core business saw a significant windfall during COVID lockdowns. Lawn and garden care is not a growth business, and SMG dominance does not allow for much incremental gain in market share. However, our thesis was that even in a reopening scenario where lawn and garden businesses would revert to the mean, the cannabis market was poised for years of growth as more states legalized recreational use.
What we missed was the highly inefficient structure of the U.S. cannabis market. Currently, California, Colorado, and Michigan have the biggest and most mature markets. However, over the course of the last few years, several very large states and regions have voted to legalize recreational use, including New York, New Jersey, and Connecticut. The fly in the ointment has been Oklahoma, which is a medical marijuana state. Although recreational use is still prohibited, licenses to grow the crop were granted in Laissez Faire fashion to anyone willing to buy one. Oklahoma began to grow and cultivate the crop far in excess of their medical marijuana demand. That excess supply bled into grey markets across the country, devastating pricing for growers in other states. This glut put a near complete stop to capital spending on grow operations. With no new or incremental facilities coming on, Scotts’ Hawthorne business was cut in half from its peak in F21. This, of course, had a devastating effect on the stock.”
4. The J.R. Simplot Company
Estimated Market Capitalization: $11.4 billion
TTM Revenue: $7.6 billion
The J.R. Simplot Company is a Boise, Idaho-based food and agricultural company that was founded in 1929. The privately owned and family-held company is in the pest management business through the Simplot Pest Control division. The division specializes in integrated pest management solutions for commercial and residential properties. Simplot Pest Control offers a range of services, including insect control, rodent control, bird control, wildlife management, and vegetation management. The company uses a combination of physical, cultural, and chemical control methods to manage pests in a way that is environmentally friendly and sustainable.
3. FMC Corporation (NYSE:FMC)
Market Capitalization: $14.62 billion
FMC Corporation (NYSE:FMC) is a Philadelphia, Pennsylvania-based agricultural sciences company that was founded in 1883 as an insecticide maker for pest control. The company has brands like Kalida, Talstar, and Scion in its portfolio to address the pest control market. The company also provides support to personnel that provide pest control solutions through its FMC True Champions end-user loyalty program. FMC Corporation (NYSE:FMC) has a headcount of 6,400 employees globally and invests 7% of its top line into research and development (R&D) of new products that are taking pest control formulation technology to the next level.
Here’s what TimesSquare Capital Management said about FMC Corporation (NYSE:FMC) in its Q3 2022 investor letter:
“FMC Corporation (NYSE:FMC) is an agricultural sciences company offering solutions in areas such as crop protection, plant health, professional pest, and turf management. The company reported mixed results with an upside to revenues though with declining margins on cost headwinds. While the stock pulled back by -1%, we used this weakness as an opportunity to increase the position.”
2. Rollins, Inc. (NYSE:ROL)
Market Capitalization: 18.23 billion
Rollins, Inc. (NYSE:ROL) is an Atlanta, Georgia-based pest control company that fulfils the needs of residential and commercial clients. The company has a rich history of over a century and has leading brands like Critter Control and Orkin in its portfolio. The company experienced a YoY revenue growth of 11.2% during 2022 as it provided services across 70 countries. As of April 2022, Rollins, Inc. (NYSE:ROL) provides its services to 2.8 million residential and commercial customers. The company claims that 80% of the top line is generated through contractual obligation and recurring in nature, which makes the business recession resistant in nature.
Baron Funds shared its stance on Rollins, Inc. (NYSE:ROL) in its Q2 2022 investor letter. Here’s what the firm said:
“Rollins, Inc. (NYSE:ROL), which provides pest and termite control services for residential and commercial customers, contributed to performance. The company reported solid quarterly earnings and continued its consistent execution despite macroeconomic uncertainties. We believe Rollins has a strong brand and leading market share within in an attractive and defensive end market. The company has historically raised its prices to offset growth in its operating expenses. We expect that Rollins should be able to continue compounding its revenues, earnings, and free cash flow for many years.”
1. Ecolab Inc. (NYSE:ECL)
Market Capitalization: $45.2 billion
Ecolab Inc. (NYSE:ECL) is a Saint Paul, Minnesota-based company founded in 1923 by Merritt J. Osborn. The company specializes in water purification and treatment and pest elimination services. The company’s pest control services include comprehensive inspections and assessments to identify potential pest problems, customized treatment plans, ongoing monitoring and maintenance, and employee training to help prevent future infestations. Ecolab uses a combination of physical, cultural, and chemical control methods to manage pests while minimizing the impact on the environment and human health.
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