Rollins (NYSE:ROL) versus ABM Industries (NYSE:ABM) Head to Head Comparison
by Mitch Edgeman · The Markets DailyRollins (NYSE:ROL – Get Free Report) and ABM Industries (NYSE:ABM – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Institutional and Insider Ownership
51.8% of Rollins shares are owned by institutional investors. Comparatively, 91.6% of ABM Industries shares are owned by institutional investors. 5.8% of Rollins shares are owned by company insiders. Comparatively, 0.9% of ABM Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Rollins and ABM Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rollins | 3 | 11 | 3 | 1 | 2.11 |
| ABM Industries | 0 | 3 | 2 | 0 | 2.40 |
Rollins presently has a consensus target price of $39.25, suggesting a potential upside of 3.40%. ABM Industries has a consensus target price of $50.88, suggesting a potential downside of 3.73%. Given Rollins’ higher probable upside, equities research analysts plainly believe Rollins is more favorable than ABM Industries.
Profitability
This table compares Rollins and ABM Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rollins | 13.19% | 39.43% | 16.89% |
| ABM Industries | 1.82% | 12.46% | 4.03% |
Risk & Volatility
Rollins has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, ABM Industries has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
Valuation and Earnings
This table compares Rollins and ABM Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rollins | $3.76 billion | 4.83 | $526.71 million | $1.09 | 34.83 |
| ABM Industries | $9.15 billion | 0.34 | $162.30 million | $2.77 | 19.08 |
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.
Dividends
Rollins pays an annual dividend of $0.73 per share and has a dividend yield of 1.9%. ABM Industries pays an annual dividend of $1.16 per share and has a dividend yield of 2.2%. Rollins pays out 67.0% of its earnings in the form of a dividend. ABM Industries pays out 41.9% 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 4 consecutive years and 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.
Summary
Rollins beats ABM Industries on 11 of the 18 factors compared between the two stocks.
About Rollins
Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.
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.