ABM vs BRC

For growth investors, Brady Corporation (BRC) is the stronger pick with 12.

8% revenue growth year-over-year, versus 4. 6% for ABM Industries Incorporated (ABM). ABM Industries Incorporated (ABM) offers the better valuation at 15. 5x trailing P/E (10. 2x forward), making it the more compelling value choice. Analysts rate ABM Industries Incorporated (ABM) a "Hold" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, ABM Industries Incorporated (ABM) is the cheapest at 15.

5x versus Brady Corporation at 20. 0x. On forward P/E, ABM Industries Incorporated is actually cheaper at 10. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ABM Industries Incorporated wins at 0. 04x versus Brady Corporation's 1. 18x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Brady Corporation (BRC) delivered a total return of +49.

7%, compared to -14. 5% for ABM Industries Incorporated (ABM). Over 10 years, the gap is even starker: BRC returned +226. 5% versus ABM's +47. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Brady Corporation (BRC) is the lower-risk stock at 0.

62β versus ABM Industries Incorporated's 0. 71β — meaning ABM is approximately 15% more volatile than BRC relative to the S&P 500. On balance sheet safety, Brady Corporation (BRC) carries a lower debt/equity ratio of 13% versus 95% for ABM Industries Incorporated — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Brady Corporation (BRC) is pulling ahead at 12.

8% versus 4. 6% for ABM Industries Incorporated (ABM). On earnings-per-share growth, the picture is similar: ABM Industries Incorporated grew EPS 102. 3% year-over-year, compared to -3. 2% for Brady Corporation. Over a 3-year CAGR, BRC leads at 5. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Brady Corporation (BRC) is the more profitable company, earning 12.

5% net margin versus 1. 9% for ABM Industries Incorporated — meaning it keeps 12. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BRC leads at 15. 6% versus 3. 7% for ABM. At the gross margin level — before operating expenses — BRC leads at 50. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, ABM Industries Incorporated (ABM) is the more undervalued stock at a PEG of 0. 04x versus Brady Corporation's 1. 18x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, ABM Industries Incorporated (ABM) trades at 10. 2x forward P/E versus 15. 6x for Brady Corporation — 5. 4x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

ABM Industries Incorporated (ABM) offers the highest yield at 2. 6%, versus 1. 2% for Brady Corporation (BRC).

For long-horizon retirement investors, Brady Corporation (BRC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

62), 1. 2% yield, +226. 5% 10Y return). Both have compounded well over 10 years (BRC: +226. 5%, ABM: +47. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ABM is a small-cap deep-value stock; BRC is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.