ABM Industries (NYSE: ABM) and Rollins (NYSE:ROL) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Risk & Volatility
ABM Industries has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Rollins has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
Insider & Institutional Ownership
98.5% of ABM Industries shares are owned by institutional investors. Comparatively, 38.1% of Rollins shares are owned by institutional investors. 1.3% of ABM Industries shares are owned by insiders. Comparatively, 56.3% of Rollins shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares ABM Industries and Rollins’ top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Rollins has lower revenue, but higher earnings than ABM Industries. ABM Industries is trading at a lower price-to-earnings ratio than Rollins, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for ABM Industries and Rollins, as reported by MarketBeat.com.
||Strong Buy Ratings
ABM Industries presently has a consensus price target of $47.67, indicating a potential upside of 46.08%. Rollins has a consensus price target of $43.00, indicating a potential downside of 14.41%. Given ABM Industries’ stronger consensus rating and higher probable upside, research analysts clearly believe ABM Industries is more favorable than Rollins.
This table compares ABM Industries and Rollins’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
ABM Industries pays an annual dividend of $0.70 per share and has a dividend yield of 2.1%. Rollins pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. ABM Industries pays out 40.0% of its earnings in the form of a dividend. Rollins pays out 64.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ABM Industries has raised its dividend for 50 consecutive years and Rollins has raised its dividend for 14 consecutive years. ABM Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
ABM Industries beats Rollins on 9 of the 16 factors compared between the two stocks.
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.
Rollins Company Profile
Rollins, Inc., through its subsidiaries, provides pest and termite control services to residential and commercial customers. It offers protection against termite damage, rodents, and insects to homes and businesses, including hotels, food service establishments, food manufacturers, retailers, and transportation companies. The company also provides pest management and sanitation services and products to the food and commodity industries; consulting services on border protection related to Australia's biosecurity program; and bird control and specialist services, as well as offers specialized services to mining, and oil and gas sectors. In addition, it offers mosquito control, wildlife services, lawn care, insulation, and HVAC services. It serves clients directly, as well as through franchisee operations in North America, Australia, Europe, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Africa, Canada, Australia, and Mexico. Rollins, Inc. was founded in 1948 and is headquartered in Atlanta, Georgia.
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