ABM Industries Incorporated (ABM) vs First Advantage Corporation (FA)

ABM Industries Incorporated and First Advantage Corporation are both Specialty Business Services companies. First Advantage Corporation is the larger, with a market value of $3.4B against $2.9B — 1.2× the size. ABM Industries Incorporated trades at the lower P/E: 17.9× against 135×. First Advantage Corporation grew revenue faster over the last twelve months: 32.9% against 6.00%. ABM Industries Incorporated has the higher net margin (1.82% vs 1.51%) and the higher return on invested capital (5.82% vs 3.59%). Across the 22 metrics below, ABM Industries Incorporated leads on 16 and First Advantage Corporation on 6.

Valuation

Metric ABM FA Specialty Business Services median
P/E 17.91 135.27 23.86
P/S 0.32 2.02 1.06
P/B 1.64 2.60 2.37
Price to free cash flow 9.34 17.22 16.54
EV/EBITDA 10.57 11.98 11.51
EV/Sales 0.50 3.12 1.51
Earnings yield 5.58% 0.74% 2.14%
Free cash flow yield 10.70% 5.81% 1.55%

Profitability

Metric ABM FA Specialty Business Services median
Gross margin 11.95% 45.22% 35.31%
Operating margin 3.51% 10.68% 3.43%
Net margin 1.82% 1.51% 1.67%
Free cash flow margin 3.43% 11.75% 3.28%
Return on equity 9.19% 1.94% 0.58%
Return on assets 3.06% 0.66% 0.33%
Return on invested capital 5.82% 3.59% 0.65%

Growth

Metric ABM FA Specialty Business Services median
Revenue growth (TTM) 6.00% 32.89% 6.04%
EPS growth (last fiscal year) 102.34% 72.97% —
Revenue growth, 5-year CAGR 7.87% 25.33% 7.66%
Net income growth, 5-year CAGR 252.12% 0.00% 0.00%

Health

Metric ABM FA Specialty Business Services median
Debt to equity 0.99 1.57 0.21
Current ratio 1.42 2.53 1.62
Net debt to EBITDA 3.50 4.75 1.16

Dividend

Metric ABM FA Specialty Business Services median
Dividend yield 2.28% — 1.61%
Payout ratio 0.24 0.00 0.00

Size

Metric ABM FA Specialty Business Services median
Market cap 2.90b 3.42b 879.14m

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