Analyzing Boyd Group Services (OTCMKTS:BYDGF) & ABM Industries (NYSE:ABM)

ABM Industries (NYSE:ABM) and Boyd Group Services (OTCMKTS:BYDGF) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Dividends

ABM Industries pays an annual dividend of $1.16 per share and has a dividend yield of 2.5%. Boyd Group Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. ABM Industries pays out 44.6% of its earnings in the form of a dividend. Boyd Group Services pays out 118.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ABM Industries has increased its dividend for 59 consecutive years. ABM Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

91.6% of ABM Industries shares are owned by institutional investors. Comparatively, 0.2% of Boyd Group Services shares are owned by institutional investors. 0.9% of ABM Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ABM Industries	1.75%	11.84%	3.91%
Boyd Group Services	0.27%	2.70%	0.91%

Analyst Ratings

This is a breakdown of current recommendations and price targets for ABM Industries and Boyd Group Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABM Industries	0	4	1	0	2.20
Boyd Group Services	0	0	4	0	3.00

ABM Industries presently has a consensus target price of $47.00, suggesting a potential upside of 1.06%. Given ABM Industries’ higher possible upside, equities analysts plainly believe ABM Industries is more favorable than Boyd Group Services.

Valuation & Earnings

This table compares ABM Industries and Boyd Group Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABM Industries	$8.75 billion	0.31	$162.30 million	$2.60	17.89
Boyd Group Services	$3.07 billion	1.11	$24.54 million	$0.37	427.62

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

Volatility & Risk

ABM Industries has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Boyd Group Services has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Summary

ABM Industries beats Boyd Group Services on 12 of the 17 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 Boyd Group Services

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.