Frontdoor (NASDAQ:FTDR) vs. APi Group (NYSE:APG) Financial Comparison

Frontdoor (NASDAQ:FTDR) and APi Group (NYSE:APG) are both mid-cap construction companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

86.6% of APi Group shares are held by institutional investors. 0.3% of Frontdoor shares are held by company insiders. Comparatively, 16.4% of APi Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Frontdoor has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, APi Group has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Frontdoor and APi Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	1	1	2	0	2.25
APi Group	0	2	5	0	2.71

Frontdoor currently has a consensus price target of $40.00, suggesting a potential upside of 13.67%. APi Group has a consensus price target of $44.29, suggesting a potential upside of 21.63%. Given APi Group’s stronger consensus rating and higher probable upside, analysts plainly believe APi Group is more favorable than Frontdoor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Frontdoor	10.27%	132.00%	17.45%
APi Group	2.49%	37.83%	10.90%

Earnings and Valuation

This table compares Frontdoor and APi Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	$1.78 billion	1.54	$171.00 million	$2.28	15.43
APi Group	$6.93 billion	1.44	$153.00 million	($2.15)	-16.93

Frontdoor has higher earnings, but lower revenue than APi Group. APi Group is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company's home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

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.