Reviewing ABM Industries (NYSE:ABM) & Crawford & Company (NYSE:CRD.B)

ABM Industries (NYSE:ABM) and Crawford & Company (NYSE:CRD.B) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Dividends

ABM Industries pays an annual dividend of $1.06 per share and has a dividend yield of 2.5%. Crawford & Company pays an annual dividend of $0.30 per share and has a dividend yield of 2.8%. ABM Industries pays out 57.6% of its earnings in the form of a dividend. Crawford & Company pays out 50.8% 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. ABM Industries has increased its dividend for 59 consecutive years. Crawford & Company is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

91.6% of ABM Industries shares are owned by institutional investors. Comparatively, 11.0% of Crawford & Company shares are owned by institutional investors. 0.9% of ABM Industries shares are owned by insiders. Comparatively, 51.0% of Crawford & Company shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ABM Industries and Crawford & Company, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABM Industries	0	3	2	0	2.40
Crawford & Company	0	0	0	0	0.00

ABM Industries currently has a consensus target price of $55.67, indicating a potential upside of 32.72%. Given ABM Industries’ stronger consensus rating and higher possible upside, analysts plainly believe ABM Industries is more favorable than Crawford & Company.

Profitability

This table compares ABM Industries and Crawford & Company’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ABM Industries	1.34%	12.12%	4.18%
Crawford & Company	2.18%	25.91%	5.26%

Volatility & Risk

ABM Industries has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Crawford & Company has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares ABM Industries and Crawford & Company”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABM Industries	$8.63 billion	0.30	$81.40 million	$1.84	22.80
Crawford & Company	$1.34 billion	0.39	$26.60 million	$0.59	17.90

ABM Industries has higher revenue and earnings than Crawford & Company. Crawford & Company 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 Crawford & Company on 9 of the 16 factors compared between the two stocks.

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.

About Crawford & Company

Crawford & Co. engages in the provision of claims management and outsourcing solutions to carriers, brokers, and corporates. It operates through the following segments: Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. The Crawford Loss Adjusting segment consists of adjusting services provided to insurance companies and self-insured entities related to property and casualty losses caused by physical damage to commercial and residential real property and certain types of personal property. The Crawford TPA Solutions segment provides third party administration for workers’ compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers, and insurers worldwide. The Crawford Platform Solutions segment is involved in the management of contractor networks and the provision of claims management services to insurance companies and self-insured entities related to property, casualty, and catastrophic losses. The company was founded by Jim Crawford in 1941 and is headquartered in Peachtree Corners, GA.