Head-To-Head Contrast: ABM Industries (NYSE:ABM) vs. Wolters Kluwer (OTCMKTS:WTKWY)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABM Industries	0	0	3	1	3.25
Wolters Kluwer	0	1	0	1	3.00

ABM Industries presently has a consensus target price of $56.00, suggesting a potential upside of 13.71%. Given ABM Industries’ stronger consensus rating and higher possible upside, research analysts plainly believe ABM Industries is more favorable than Wolters Kluwer.

Dividends

ABM Industries pays an annual dividend of $1.06 per share and has a dividend yield of 2.2%. Wolters Kluwer pays an annual dividend of $1.83 per share and has a dividend yield of 1.5%. ABM Industries pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ABM Industries has increased its dividend for 59 consecutive years. ABM Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ABM Industries	0.93%	12.54%	4.38%
Wolters Kluwer	N/A	N/A	N/A

Institutional and Insider Ownership

91.6% of ABM Industries shares are owned by institutional investors. Comparatively, 0.0% of Wolters Kluwer shares are owned by institutional investors. 0.9% of ABM Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

ABM Industries has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Wolters Kluwer has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares ABM Industries and Wolters Kluwer”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABM Industries	$8.36 billion	0.37	$81.40 million	$1.24	39.72
Wolters Kluwer	$6.40 billion	4.69	$1.17 billion	N/A	N/A

Wolters Kluwer has lower revenue, but higher earnings than ABM Industries.

Summary

ABM Industries beats Wolters Kluwer on 12 of the 15 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 Wolters Kluwer

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through Health; Tax & Accounting; Financial & Corporate Compliance; Legal & Regulatory; and Corporate Performance & ESG segments. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It serves hospitals, healthcare organizations, clinicians, students, schools, libraries, payers, life sciences, and pharmacies. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It serves accounting firms, tax and auditing departments, businesses of all sizes, government agencies, libraries, and universities. The Financial & Corporate Compliance segment offers solutions for legal entity compliance and banking product compliance. It serves corporations, small businesses, law firms, banks, non-bank lenders, credit unions, insurers, and securities firms. The Legal & Regulatory segment provides information, insights, and workflow solutions for changing regulatory obligations, managing risk, and increasing efficiency. It provides solutions for legal and compliance professionals in law firms, corporate legal departments, universities, and government organizations. The Corporate Performance & ESG segment offers enterprise software to drive financial and sustainability performance and manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact. It serves corporate finance, audit, planning, risk, environmental, health and safety, operational risk management, and sustainability professionals in corporations, banks, and governments. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.