Financial Comparison: ABM Industries (ABM) & Its Competitors

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

Earnings and Valuation

This table compares ABM Industries and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ABM Industries	$9.15 billion	$162.30 million	19.61
ABM Industries Competitors	$2.49 billion	$141.50 million	13.11

ABM Industries has higher revenue and earnings than its competitors. ABM Industries is trading at a higher price-to-earnings ratio than its competitors, 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 2.1%. 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 63.7% of their earnings in the form of a dividend. ABM Industries has increased its dividend for 59 consecutive years.

Risk & Volatility

ABM Industries has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, ABM Industries’ competitors have a beta of 2.50, suggesting that their average stock price is 150% more volatile than the S&P 500.

Profitability

This table compares ABM Industries and its competitors’ 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	-49.89%	-119.07%	-1.27%

Insider & Institutional Ownership

91.6% of ABM Industries shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Commercial Services & Supplies” companies are owned by institutional investors. 0.9% of ABM Industries shares are owned by insiders. Comparatively, 17.5% of shares of all “Commercial Services & Supplies” companies are owned 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ABM Industries and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABM Industries	0	3	2	0	2.40
ABM Industries Competitors	1911	6252	9042	665	2.47

ABM Industries currently has a consensus target price of $50.88, indicating a potential downside of 6.36%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.24%. Given ABM Industries’ competitors stronger consensus rating and higher possible upside, analysts plainly believe ABM Industries has less favorable growth aspects than its competitors.

Summary

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

ABM Industries Company Profile

ABM Industries provides facility, infrastructure and building maintenance services to commercial, industrial and institutional customers. Its offerings include janitorial and custodial services, facility engineering and maintenance, parking and transportation services, and electrical and energy solutions. The company serves a range of sectors, including commercial real estate, aviation, education, healthcare, manufacturing and distribution. Its services are delivered primarily across the United States, with operations in select international markets.