ABM vs. CTAS: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Business - Services sector should consider ABM Industries and Cintas as potential undervalued stocks, with ABM currently appearing to be the superior value option based on various valuation metrics [1][6]. Valuation Metrics - Both ABM Industries and Cintas have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3]. - ABM has a forward P/E ratio of 14.13, significantly lower than Cintas's forward P/E of 47.58, suggesting that ABM may be undervalued relative to Cintas [5]. - The PEG ratio for ABM is 2.73, while Cintas has a PEG ratio of 3.96, further indicating that ABM is more favorably valued when considering expected earnings growth [5]. - ABM's P/B ratio stands at 1.85, compared to Cintas's P/B of 19.28, reinforcing the notion that ABM is a better value option [6]. - Based on these valuation figures, ABM earns a Value grade of A, while Cintas receives a Value grade of D, highlighting the relative undervaluation of ABM [6].