Critical Comparison: APi Group (NYSE:APG) and UMC (OTCMKTS:UMCN)

UMC (OTCMKTS:UMCN) and APi Group (NYSE:APG) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares UMC and APi Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMC	$28.55 million	1.38	-$340,000.00	N/A	N/A
APi Group	$7.91 billion	2.27	$302.00 million	($0.71)	-58.46

APi Group has higher revenue and earnings than UMC.

Profitability

This table compares UMC and APi Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMC	-12.39%	N/A	N/A
APi Group	3.85%	37.63%	14.28%

Institutional and Insider Ownership

86.6% of APi Group shares are owned by institutional investors. 16.8% of UMC shares are owned by company insiders. Comparatively, 18.7% of APi Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

UMC has a beta of 30.07, suggesting that its stock price is 2,907% more volatile than the S&P 500. Comparatively, APi Group has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for UMC and APi Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMC	0	0	0	0	0.00
APi Group	0	2	6	1	2.89

APi Group has a consensus price target of $52.14, indicating a potential upside of 25.63%. Given APi Group’s stronger consensus rating and higher probable upside, analysts plainly believe APi Group is more favorable than UMC.

Summary

APi Group beats UMC on 12 of the 13 factors compared between the two stocks.

About UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.

About APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.