ABM Industries (NYSE:ABM) vs. Airbnb (NASDAQ:ABNB) Financial Analysis

ABM Industries (NYSE:ABM) and Airbnb (NASDAQ:ABNB) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
ABM Industries 3.66% 14.42% 5.88%
Airbnb N/A N/A N/A

Institutional and Insider Ownership

91.5% of ABM Industries shares are owned by institutional investors. Comparatively, 12.5% of Airbnb shares are owned by institutional investors. 0.5% of ABM Industries shares are owned by company insiders. Comparatively, 36.3% of Airbnb shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ABM Industries and Airbnb, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ABM Industries 0 1 3 0 2.75
Airbnb 1 19 16 0 2.42

ABM Industries currently has a consensus price target of $54.00, suggesting a potential upside of 18.14%. Airbnb has a consensus price target of $170.57, suggesting a potential upside of 22.49%. Given Airbnb’s higher possible upside, analysts plainly believe Airbnb is more favorable than ABM Industries.

Valuation and Earnings

This table compares ABM Industries and Airbnb’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ABM Industries $5.99 billion 0.51 $300,000.00 $2.43 18.81
Airbnb $3.38 billion 25.45 -$4.58 billion ($15.53) -8.97

ABM Industries has higher revenue and earnings than Airbnb. Airbnb 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 Airbnb on 9 of the 13 factors compared between the two stocks.

About ABM Industries

ABM Industries, Inc. engages in the provision of facility services for commercial, industrial, and institutional buildings. It operates through the following segments: Business & Industry, Aviation, Technology & Manufacturing, Education, and Technical Solutions. The Business & Industry segment encompasses janitorial, facilities engineering, and parking services for commercial real estate properties and sports and entertainment venues. It also provides vehicle maintenance services to rental car providers. The Aviation segment supports airlines and airports with parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. The Technology & Manufacturing segment provides janitorial, facilities engineering, and parking services. The Education segment delivers janitorial, custodial, landscaping & grounds, facilities engineering and parking services for public school districts, private schools, colleges and universities. The Technical Solutions segment engages in mechanical and electrical services. The company was founded by Morris Rosenberg in 1909 and is headquartered in New York, NY.

About Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform for stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms and luxury villas. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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