BGSF (NYSE:BGSF) & ABM Industries (NYSE:ABM) Head to Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BGSF	-6.32%	-13.16%	-7.20%
ABM Industries	1.86%	11.96%	4.10%

Volatility and Risk

BGSF has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, ABM Industries has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Valuation and Earnings

This table compares BGSF 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
BGSF	$263.69 million	0.26	-$3.34 million	($1.03)	-6.02
ABM Industries	$8.75 billion	0.29	$162.30 million	$2.59	16.93

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

Institutional and Insider Ownership

37.2% of BGSF shares are held by institutional investors. Comparatively, 91.6% of ABM Industries shares are held by institutional investors. 8.0% of BGSF 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

BGSF pays an annual dividend of $0.60 per share and has a dividend yield of 9.7%. ABM Industries pays an annual dividend of $1.16 per share and has a dividend yield of 2.6%. BGSF pays out -58.3% of its earnings in the form of a dividend. ABM Industries pays out 44.8% 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 raised its dividend for 59 consecutive years. BGSF is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for BGSF and ABM Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	1	1	2.50
ABM Industries	0	4	0	0	2.00

BGSF presently has a consensus target price of $9.00, indicating a potential upside of 45.16%. ABM Industries has a consensus target price of $50.67, indicating a potential upside of 15.55%. Given BGSF’s stronger consensus rating and higher possible upside, research analysts clearly believe BGSF is more favorable than ABM Industries.

Summary

ABM Industries beats BGSF on 11 of the 18 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

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.