Comparing Sodexo (OTCMKTS:SDXAY) and ABM Industries (NYSE:ABM)

Sodexo (OTCMKTS:SDXAY) and ABM Industries (NYSE:ABM) are both mid-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

Sodexo pays an annual dividend of $0.39 per share and has a dividend yield of 3.5%. ABM Industries pays an annual dividend of $1.06 per share and has a dividend yield of 2.5%. ABM Industries pays out 57.6% of its earnings in the form of a dividend. ABM Industries has raised its dividend for 59 consecutive years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sodexo	$26.49 billion	0.31	$764.85 million	N/A	N/A
ABM Industries	$8.63 billion	0.31	$81.40 million	$1.84	23.48

Sodexo has higher revenue and earnings than ABM Industries.

Profitability

This table compares Sodexo and ABM Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sodexo	N/A	N/A	N/A
ABM Industries	1.34%	12.12%	4.18%

Risk & Volatility

Sodexo has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, ABM Industries has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sodexo and ABM Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sodexo	2	7	0	0	1.78
ABM Industries	0	3	2	0	2.40

ABM Industries has a consensus price target of $55.67, suggesting a potential upside of 28.86%. Given ABM Industries’ stronger consensus rating and higher probable upside, analysts plainly believe ABM Industries is more favorable than Sodexo.

Insider & Institutional Ownership

91.6% of ABM Industries shares are held by institutional investors. 1.0% of Sodexo shares are held by company insiders. Comparatively, 0.9% of ABM Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

ABM Industries beats Sodexo on 10 of the 15 factors compared between the two stocks.

About Sodexo

Sodexo S.A. provides food services and facilities management services worldwide. It offers various on-site services, which includes corporate services, energy and resources, government and agencies, and other services; healthcare and seniors; and learning solutions to schools and universities. The company also provides food services comprising retail service, food delivery, and meal and food vouchers, as well as digital food ordering services; savings and purchase solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. In addition, it offers facility management services, including technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

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.