Head to Head Contrast: The Advisory Board (ABCO) and G&K Services (GK)
The Advisory Board (NASDAQ: ABCO) and G&K Services (NASDAQ:GK) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
This is a breakdown of current ratings for The Advisory Board and G&K Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Advisory Board||0||11||3||0||2.21|
This table compares The Advisory Board and G&K Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Advisory Board||-3.42%||0.48%||-1.23%|
Insider & Institutional Ownership
95.5% of The Advisory Board shares are owned by institutional investors. Comparatively, 88.6% of G&K Services shares are owned by institutional investors. 4.7% of The Advisory Board shares are owned by company insiders. Comparatively, 3.7% of G&K Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
G&K Services pays an annual dividend of $1.56 per share. The Advisory Board does not pay a dividend. G&K Services pays out 54.7% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares The Advisory Board and G&K Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Advisory Board||$803.42 million||2.73||$91.23 million||$1.74||30.93|
The Advisory Board has higher revenue and earnings than G&K Services. G&K Services is trading at a lower price-to-earnings ratio than The Advisory Board, indicating that it is currently the more affordable of the two stocks.
The Advisory Board Company Profile
The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.
G&K Services Company Profile
G&K Services, Inc. is a service-focused provider of branded uniform and facility services programs. The Company provides a range of workwear and protective safety apparel through rental and direct purchase programs. The Company also supplies various facility products and services, including floor mats, towels, mops, restroom hygiene products, and first aid supplies. It also manufactures certain work apparel garments that are used to support its garment rental and direct purchase programs. It operates in two segments: United States (includes the Dominican Republic) and Canada. The Company operated from approximately 160 locations, as of July 2, 2016. The Company serves a diverse base of customer locations in various industries, including automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, retail, restaurants, construction and trades, hospitality, government, healthcare and others.
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