Contrasting APi Group (NYSE:APG) & Secom (OTCMKTS:SOMLY)

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

Insider & Institutional Ownership

86.6% of APi Group shares are owned by institutional investors. 17.0% of APi Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Secom 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
Secom	$7.88 billion	2.11	$713.52 million	$0.42	21.17
APi Group	$7.02 billion	2.44	$250.00 million	$0.37	111.33

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

Volatility and Risk

Secom has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, APi Group has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Secom and APi Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Secom	0	0	0	0	0.00
APi Group	0	2	7	1	2.90

APi Group has a consensus price target of $38.81, suggesting a potential downside of 5.78%. Given APi Group’s stronger consensus rating and higher probable upside, analysts plainly believe APi Group is more favorable than Secom.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Secom	8.65%	7.49%	5.06%
APi Group	3.44%	21.86%	8.08%

Summary

APi Group beats Secom on 11 of the 15 factors compared between the two stocks.

About Secom

SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.

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.