ABM Industries (NYSE:ABM – Get Free Report) and Liquidity Services (NASDAQ:LQDT – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
Institutional and Insider Ownership
91.6% of ABM Industries shares are owned by institutional investors. Comparatively, 71.2% of Liquidity Services shares are owned by institutional investors. 0.9% of ABM Industries shares are owned by insiders. Comparatively, 28.1% of Liquidity Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares ABM Industries and Liquidity Services”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 | 0.33 | $162.30 million | $2.77 | 17.98 |
| Liquidity Services | $476.67 million | 2.87 | $28.09 million | $1.02 | 42.75 |
ABM Industries has higher revenue and earnings than Liquidity Services. ABM Industries is trading at a lower price-to-earnings ratio than Liquidity Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ABM Industries and Liquidity Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ABM Industries | 1.82% | 12.46% | 4.03% |
| Liquidity Services | 6.79% | 17.60% | 9.86% |
Analyst Ratings
This is a summary of recent ratings for ABM Industries and Liquidity 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 |
| Liquidity Services | 0 | 0 | 2 | 1 | 3.33 |
ABM Industries currently has a consensus price target of $50.88, indicating a potential upside of 2.12%. Liquidity Services has a consensus price target of $50.00, indicating a potential upside of 14.65%. Given Liquidity Services’ stronger consensus rating and higher possible upside, analysts clearly believe Liquidity Services is more favorable than ABM Industries.
Risk & Volatility
ABM Industries has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Liquidity Services has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Summary
Liquidity Services beats ABM Industries on 11 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 Liquidity Services
Liquidity Services, Inc. provides e-commerce marketplaces, self-directed auction listing tools, and value-added services in the United States and internationally. The company operates through four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination. The company also offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services. In addition, it operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. The company offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment. The company was incorporated in 1999 and is headquartered in Bethesda, Maryland.
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