Rollins (NYSE: ROL) and ABM Industries (NYSE:ABM) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
38.1% of Rollins shares are held by institutional investors. Comparatively, 98.5% of ABM Industries shares are held by institutional investors. 56.3% of Rollins shares are held by company insiders. Comparatively, 1.3% of ABM Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for Rollins and ABM Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rollins currently has a consensus target price of $43.00, indicating a potential downside of 16.16%. ABM Industries has a consensus target price of $47.67, indicating a potential upside of 42.12%. Given ABM Industries’ stronger consensus rating and higher possible upside, analysts plainly believe ABM Industries is more favorable than Rollins.
Valuation and Earnings
This table compares Rollins and ABM Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rollins||$1.67 billion||6.69||$179.12 million||$0.87||58.95|
|ABM Industries||$5.45 billion||0.40||$3.79 million||$1.75||19.17|
Rollins has higher earnings, but lower revenue than ABM Industries. ABM Industries is trading at a lower price-to-earnings ratio than Rollins, indicating that it is currently the more affordable of the two stocks.
This table compares Rollins and ABM Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Rollins has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, ABM Industries has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Rollins pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. ABM Industries pays an annual dividend of $0.70 per share and has a dividend yield of 2.1%. Rollins pays out 64.4% of its earnings in the form of a dividend. ABM Industries pays out 40.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rollins has increased its dividend for 14 consecutive years and ABM Industries has increased its dividend for 50 consecutive years. ABM Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
ABM Industries beats Rollins on 9 of the 16 factors compared between the two stocks.
Rollins Company Profile
Rollins, Inc., through its subsidiaries, provides pest and termite control services to residential and commercial customers. It offers protection against termite damage, rodents, and insects to homes and businesses, including hotels, food service establishments, food manufacturers, retailers, and transportation companies. The company also provides pest management and sanitation services and products to the food and commodity industries; consulting services on border protection related to Australia's biosecurity program; and bird control and specialist services, as well as offers specialized services to mining, and oil and gas sectors. In addition, it offers mosquito control, wildlife services, lawn care, insulation, and HVAC services. It serves clients directly, as well as through franchisee operations in North America, Australia, Europe, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Africa, Canada, Australia, and Mexico. Rollins, Inc. was founded in 1948 and is headquartered in Atlanta, Georgia.
ABM Industries Company Profile
ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.
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