ABM Industries (NYSE:ABM) versus Legacy Education Alliance (OTCMKTS:LEAI) Financial Comparison

Legacy Education Alliance (OTCMKTS:LEAI) and ABM Industries (NYSE:ABM) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Insider and Institutional Ownership

91.6% of ABM Industries shares are held by institutional investors. 28.1% of Legacy Education Alliance shares are held by insiders. Comparatively, 0.9% of ABM Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Legacy Education Alliance and ABM Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Education Alliance	N/A	N/A	N/A
ABM Industries	1.34%	12.12%	4.18%

Risk & Volatility

Legacy Education Alliance has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, ABM Industries has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Legacy Education Alliance and ABM Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Education Alliance	0	0	0	0	0.00
ABM Industries	0	2	2	0	2.50

ABM Industries has a consensus price target of $55.67, suggesting a potential upside of 19.04%. Given ABM Industries’ stronger consensus rating and higher possible upside, analysts clearly believe ABM Industries is more favorable than Legacy Education Alliance.

Valuation and Earnings

This table compares Legacy Education Alliance and ABM Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Education Alliance	$150,000.00	0.10	-$2.62 million	($0.07)	0.00
ABM Industries	$8.36 billion	0.34	$81.40 million	$1.84	25.42

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

Summary

ABM Industries beats Legacy Education Alliance on 12 of the 14 factors compared between the two stocks.

About Legacy Education Alliance

Legacy Education Alliance, Inc., together with its subsidiaries, provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally. The company markets its products and services under the Building Wealth with Legacy and Homemade Investor by Tarek El Moussa brands. It provides its programs through various formats and channels, including free workshops, basic trainings, forums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. Legacy Education Alliance, Inc. was founded in 1996 and is headquartered in Cape Coral, Florida.

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.