ABM Industries (NYSE:ABM – Get Free Report) and Itex (OTCMKTS:ITEX – Get Free Report) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Insider & Institutional Ownership
91.6% of ABM Industries shares are held by institutional investors. 0.9% of ABM Industries shares are held by company insiders. Comparatively, 32.0% of Itex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares ABM Industries and Itex”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ABM Industries | $8.63 billion | 0.31 | $81.40 million | $1.84 | 24.05 |
| Itex | $5.44 million | 0.87 | $500,000.00 | N/A | N/A |
ABM Industries has higher revenue and earnings than Itex.
Dividends
ABM Industries pays an annual dividend of $1.06 per share and has a dividend yield of 2.4%. Itex pays an annual dividend of $0.80 per share and has a dividend yield of 28.4%. ABM Industries pays out 57.6% of its earnings in the form of a dividend. ABM Industries has raised its dividend for 59 consecutive years.
Profitability
This table compares ABM Industries and Itex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ABM Industries | 1.34% | 12.12% | 4.18% |
| Itex | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent ratings for ABM Industries and Itex, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ABM Industries | 0 | 3 | 2 | 0 | 2.40 |
| Itex | 0 | 0 | 0 | 0 | 0.00 |
ABM Industries presently has a consensus price target of $55.67, indicating a potential upside of 25.77%. Given ABM Industries’ stronger consensus rating and higher probable upside, analysts plainly believe ABM Industries is more favorable than Itex.
Volatility & Risk
ABM Industries has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Itex has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
Summary
ABM Industries beats Itex on 11 of the 15 factors compared between the two stocks.
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.
About Itex
ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company’s marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.
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