ABM Industries (NYSE:ABM – Get Free Report) and BrightView (NYSE:BV – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Volatility and Risk
ABM Industries has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, BrightView has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Insider and Institutional Ownership
91.6% of ABM Industries shares are held by institutional investors. Comparatively, 92.4% of BrightView shares are held by institutional investors. 0.9% of ABM Industries shares are held by insiders. Comparatively, 2.8% of BrightView shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ABM Industries | 0 | 4 | 0 | 0 | 2.00 |
| BrightView | 1 | 3 | 2 | 2 | 2.63 |
ABM Industries presently has a consensus price target of $50.67, indicating a potential upside of 9.29%. BrightView has a consensus price target of $14.70, indicating a potential upside of 6.52%. Given ABM Industries’ higher probable upside, equities analysts plainly believe ABM Industries is more favorable than BrightView.
Profitability
This table compares ABM Industries and BrightView’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ABM Industries | 1.86% | 11.96% | 4.10% |
| BrightView | 2.10% | 8.43% | 3.21% |
Valuation & Earnings
This table compares ABM Industries and BrightView”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ABM Industries | $8.75 billion | 0.32 | $162.30 million | $2.59 | 17.90 |
| BrightView | $2.67 billion | 0.49 | $56.00 million | $0.04 | 345.00 |
ABM Industries has higher revenue and earnings than BrightView. ABM Industries is trading at a lower price-to-earnings ratio than BrightView, indicating that it is currently the more affordable of the two stocks.
Summary
BrightView beats ABM Industries on 9 of the 15 factors compared between the two stocks.
About ABM Industries
ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. It operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments. The company offers janitorial, facilities engineering, and parking services for commercial real estate properties, including corporate offices for high tech clients, sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities; provides vehicle maintenance and other services to rental car providers. It also offers integrated facility services, engineering, and other specialized services in various types of manufacturing, distribution, and data center facilities. In addition, the company delivers custodial and landscaping and grounds for public school districts, private schools, colleges, and universities. Further, it supports airlines and airports with services comprising passenger assistance, catering logistics, air cabin maintenance, and transportation services. Additionally, the company provides electric vehicle power design, installation, and maintenance, as well as microgrid systems installations. ABM Industries Incorporated was founded in 1909 and is headquartered in New York, New York.
About BrightView
BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 8,800 office parks and corporate campuses 7,100 residential communities, and 550 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.
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