Reviewing ABM Industries (NYSE:ABM) and APi Group (NYSE:APG)

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

Analyst Ratings

This is a summary of current recommendations and price targets for ABM Industries and APi Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABM Industries	0	5	1	0	2.17
APi Group	0	2	5	0	2.71

ABM Industries currently has a consensus target price of $45.20, suggesting a potential downside of 3.56%. APi Group has a consensus target price of $44.29, suggesting a potential upside of 21.63%. Given APi Group’s stronger consensus rating and higher possible upside, analysts clearly believe APi Group is more favorable than ABM Industries.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABM Industries	$8.10 billion	0.37	$251.40 million	$3.91	11.99
APi Group	$6.93 billion	1.44	$153.00 million	($2.15)	-16.93

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

Risk and Volatility

ABM Industries has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, APi Group has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ABM Industries	3.15%	12.88%	4.73%
APi Group	2.49%	37.83%	10.90%

Institutional and Insider Ownership

91.6% of ABM Industries shares are held by institutional investors. Comparatively, 86.6% of APi Group shares are held by institutional investors. 1.0% of ABM Industries 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, endowments and large money managers believe a company is poised for long-term growth.

Summary

APi Group beats ABM Industries on 8 of the 14 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 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.