Analyzing ABM Industries (ABM) & Its Peers

ABM Industries (NYSE: ABM) is one of 3 public companies in the “Services to dwellings & other buildings” industry, but how does it compare to its peers? We will compare ABM Industries to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Analyst Ratings

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This is a summary of recent ratings and price targets for ABM Industries and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ABM Industries 0 0 3 0 3.00
ABM Industries Competitors 4 26 49 2 2.60

ABM Industries presently has a consensus target price of $47.67, suggesting a potential upside of 46.08%. As a group, “Services to dwellings & other buildings” companies have a potential downside of 14.41%. Given ABM Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe ABM Industries is more favorable than its peers.

Volatility & Risk

ABM Industries has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, ABM Industries’ peers have a beta of 0.53, meaning that their average stock price is 48% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
ABM Industries 1.55% 8.33% 3.17%
ABM Industries Competitors 6.13% 19.05% 10.94%

Institutional and Insider Ownership

98.5% of ABM Industries shares are held by institutional investors. Comparatively, 68.3% of shares of all “Services to dwellings & other buildings” companies are held by institutional investors. 1.3% of ABM Industries shares are held by insiders. Comparatively, 28.8% of shares of all “Services to dwellings & other buildings” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

ABM Industries pays an annual dividend of $0.70 per share and has a dividend yield of 2.1%. ABM Industries pays out 40.0% of its earnings in the form of a dividend. As a group, “Services to dwellings & other buildings” companies pay a dividend yield of 1.5% and pay out 48.1% of their earnings in the form of a dividend. ABM Industries has increased its dividend for 50 consecutive years. ABM Industries is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
ABM Industries $5.45 billion $3.79 million 18.65
ABM Industries Competitors $2.38 billion $56.58 million 38.20

ABM Industries has higher revenue, but lower earnings than its peers. ABM Industries is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

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

ABM Industries Company Profile

ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.

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