Reviewing ABM Industries (ABM) and Frontdoor (FTDR)

ABM Industries (NYSE:ABM) and Frontdoor (NASDAQ:FTDR) are both mid-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ABM Industries and Frontdoor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ABM Industries 0 1 0 0 2.00
Frontdoor 0 1 4 0 2.80

ABM Industries presently has a consensus target price of $40.00, suggesting a potential upside of 30.08%. Frontdoor has a consensus target price of $50.69, suggesting a potential upside of 48.86%. Given Frontdoor’s stronger consensus rating and higher possible upside, analysts plainly believe Frontdoor is more favorable than ABM Industries.

Institutional and Insider Ownership

0.0% of Frontdoor shares are owned by institutional investors. 0.8% of ABM Industries shares are owned by company 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 Frontdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ABM Industries 1.34% 7.75% 2.92%
Frontdoor N/A N/A N/A

Valuation and Earnings

This table compares ABM Industries and Frontdoor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ABM Industries $5.45 billion 0.37 $3.79 million $1.75 17.57
Frontdoor N/A N/A N/A N/A N/A

ABM Industries has higher revenue and earnings than Frontdoor.

Dividends

ABM Industries pays an annual dividend of $0.70 per share and has a dividend yield of 2.3%. Frontdoor does not pay a dividend. ABM Industries pays out 40.0% of its earnings in the form of a dividend. ABM Industries has raised its dividend for 50 consecutive years.

Summary

ABM Industries beats Frontdoor on 7 of the 12 factors compared between the two stocks.

ABM Industries Company Profile

ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Aviation, Technology & Manufacturing, Education, Technical Solutions, and Healthcare segments. It offers janitorial, electrical and lighting, energy solutions, facilities engineering, HVAC and mechanical, landscape and turf, mission critical solutions, and parking. The company also provides custom facility solutions in urban, suburban, and rural areas to properties of various sizes ranging from schools and commercial buildings to hospitals, data centers, manufacturing plants, and airports. ABM Industries Incorporated was founded in 1909 and is headquartered in New York, New York.

Frontdoor Company Profile

frontdoor, inc. operates a home services platform that provides home service plans to homeowners in the United States. It provides services under the HSA, OneGuard, Landmark, and American Home Shield brand names. The company serves homeowners who require assistance with technical home repair issues by utilizing its network of pre-qualified professional contractor firms. The company was formerly known as AHS Holding Company, Inc. and changed its name to frontdoor, inc. in July 2018. The company was incorporated in 2018 and is headquartered in Memphis, Tennessee. frontdoor, inc. is a subsidiary of ServiceMaster Global Holdings, Inc.

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