Reviewing ABM Industries (NYSE:ABM) & Openlane (NYSE:OPLN)

Openlane (NYSE:OPLN) and ABM Industries (NYSE:ABM) are both mid-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for Openlane and ABM Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	3	4	0	2.57
ABM Industries	0	4	1	0	2.20

Openlane currently has a consensus target price of $43.83, indicating a potential upside of 26.61%. ABM Industries has a consensus target price of $50.88, indicating a potential upside of 1.79%. Given Openlane’s stronger consensus rating and higher probable upside, equities analysts clearly believe Openlane is more favorable than ABM Industries.

Earnings and Valuation

This table compares Openlane 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
Openlane	$1.93 billion	2.20	$177.70 million	($0.85)	-40.73
ABM Industries	$8.75 billion	0.34	$162.30 million	$2.77	18.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Openlane	9.67%	12.81%	3.62%
ABM Industries	1.82%	12.46%	4.03%

Risk and Volatility

Openlane has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, ABM Industries has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Institutional and Insider Ownership

99.8% of Openlane shares are owned by institutional investors. Comparatively, 91.6% of ABM Industries shares are owned by institutional investors. 2.2% of Openlane 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.

Summary

Openlane beats ABM Industries on 10 of the 14 factors compared between the two stocks.

About Openlane

OPENLANE Inc. provides sellers and buyers across the wholesale used vehicle industry with technology-driven remarketing solutions. The company’s end-to-end platform supports whole car, financing, logistics and other ancillary and related services. OPENLANE Inc., formerly known as KAR Auction Services Inc., is based in CARMEL, Ind.

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.