ABM Industries (NYSE:ABM – Get Free Report) and Openlane (NYSE:OPLN – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
91.6% of ABM Industries shares are owned by institutional investors. Comparatively, 99.8% of Openlane shares are owned by institutional investors. 0.9% of ABM Industries shares are owned by company insiders. Comparatively, 2.2% of Openlane shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares ABM Industries and Openlane’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ABM Industries | 1.82% | 12.46% | 4.03% |
| Openlane | 9.67% | 12.81% | 3.62% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ABM Industries | $8.75 billion | 0.34 | $162.30 million | $2.77 | 18.04 |
| Openlane | $1.93 billion | 2.20 | $177.70 million | ($0.85) | -40.73 |
Openlane has lower revenue, but higher earnings 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.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for ABM Industries and Openlane, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ABM Industries | 0 | 4 | 1 | 0 | 2.20 |
| Openlane | 0 | 3 | 4 | 0 | 2.57 |
ABM Industries currently has a consensus target price of $50.88, indicating a potential upside of 1.79%. Openlane has a consensus target price of $43.83, indicating a potential upside of 26.61%. Given Openlane’s stronger consensus rating and higher possible upside, analysts plainly believe Openlane is more favorable than ABM Industries.
Volatility and Risk
ABM Industries has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Openlane has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.
Summary
Openlane beats ABM Industries on 10 of the 14 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 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.
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