Critical Analysis: ABM Industries (NYSE:ABM) vs. Atlantic International (NASDAQ:ATLN)

Atlantic International (NASDAQ:ATLNGet Free Report) and ABM Industries (NYSE:ABMGet Free Report) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

91.6% of ABM Industries shares are held by institutional investors. 13.6% of Atlantic International shares are held by insiders. Comparatively, 0.9% of ABM Industries shares are held by 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Atlantic International and ABM Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic International 1 1 0 1 2.33
ABM Industries 0 4 0 0 2.00

ABM Industries has a consensus target price of $50.67, indicating a potential upside of 13.99%. Given ABM Industries’ higher probable upside, analysts clearly believe ABM Industries is more favorable than Atlantic International.

Volatility & Risk

Atlantic International has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, ABM Industries has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Earnings and Valuation

This table compares Atlantic International and ABM Industries”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantic International $442.61 million 0.39 -$135.48 million ($2.24) -1.32
ABM Industries $8.75 billion 0.31 $162.30 million $2.59 17.16

ABM Industries has higher revenue and earnings than Atlantic International. Atlantic International 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 Atlantic International and ABM Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantic International -22.66% N/A -90.47%
ABM Industries 1.86% 11.96% 4.10%

Summary

ABM Industries beats Atlantic International on 9 of the 14 factors compared between the two stocks.

About Atlantic International

(Get Free Report)

Atlantic International Corp. engages in the design, development, and manufacture of genetic analysis technologies. Its services include RNA sequencing and DNA sequencing. The company was founded by William C. St. Laurent and Daniel R. Jones in 2013 and is headquartered in Billercia, MA.

About ABM Industries

(Get Free Report)

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.

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