ABM Industries (ABM) and Its Competitors Critical Analysis

ABM Industries (NYSE:ABM) is one of 354 publicly-traded companies in the “Commercial Services & Supplies” industry, but how does it compare to its rivals? We will compare ABM Industries to similar businesses based on the strength of its valuation, profitability, dividends, risk, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares ABM Industries and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ABM Industries	$8.75 billion	$162.30 million	19.37
ABM Industries Competitors	$2.44 billion	$140.58 million	14.37

ABM Industries has higher revenue and earnings than its rivals. ABM Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

ABM Industries pays an annual dividend of $1.16 per share and has a dividend yield of 2.2%. ABM Industries pays out 41.9% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 64.9% of their earnings in the form of a dividend. ABM Industries has increased its dividend for 59 consecutive years.

Profitability

This table compares ABM Industries and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ABM Industries	1.82%	12.46%	4.03%
ABM Industries Competitors	-67.40%	-119.18%	-1.34%

Analyst Recommendations

This is a breakdown of current ratings and target prices for ABM Industries and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABM Industries	0	3	2	0	2.40
ABM Industries Competitors	1899	6238	9019	662	2.47

ABM Industries currently has a consensus price target of $50.88, suggesting a potential downside of 5.17%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.02%. Given ABM Industries’ rivals stronger consensus rating and higher possible upside, analysts clearly believe ABM Industries has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

91.6% of ABM Industries shares are held by institutional investors. Comparatively, 39.2% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 0.9% of ABM Industries shares are held by insiders. Comparatively, 17.0% of shares of all “Commercial Services & Supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

ABM Industries has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, ABM Industries’ rivals have a beta of 2.54, meaning that their average stock price is 154% more volatile than the S&P 500.

Summary

ABM Industries beats its rivals on 8 of the 15 factors compared.

About ABM Industries

ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. It operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments. The company offers janitorial, facilities engineering, and parking services for commercial real estate properties, including corporate offices for high tech clients, sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities; provides vehicle maintenance and other services to rental car providers. It also offers integrated facility services, engineering, and other specialized services in various types of manufacturing, distribution, and data center facilities. In addition, the company delivers custodial and landscaping and grounds for public school districts, private schools, colleges, and universities. Further, it supports airlines and airports with services comprising passenger assistance, catering logistics, air cabin maintenance, and transportation services. Additionally, the company provides electric vehicle power design, installation, and maintenance, as well as microgrid systems installations. ABM Industries Incorporated was founded in 1909 and is headquartered in New York, New York.