Reviewing Sodexo (OTCMKTS:SDXAY) & BrightView (NYSE:BV)

Sodexo (OTCMKTS:SDXAY) and BrightView (NYSE:BV) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Sodexo and BrightView, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sodexo	1	5	1	0	2.00
BrightView	3	2	2	2	2.33

BrightView has a consensus price target of $14.68, indicating a potential upside of 24.96%. Given BrightView’s stronger consensus rating and higher probable upside, analysts plainly believe BrightView is more favorable than Sodexo.

Earnings & Valuation

This table compares Sodexo and BrightView”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sodexo	$26.49 billion	0.28	$765.33 million	N/A	N/A
BrightView	$2.67 billion	0.41	$56.00 million	($0.02)	-587.50

Sodexo has higher revenue and earnings than BrightView.

Profitability

This table compares Sodexo and BrightView’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sodexo	N/A	N/A	N/A
BrightView	1.90%	7.85%	2.98%

Volatility and Risk

Sodexo has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, BrightView has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

92.4% of BrightView shares are held by institutional investors. 1.0% of Sodexo shares are held by company insiders. Comparatively, 2.8% of BrightView shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

BrightView beats Sodexo on 11 of the 13 factors compared between the two stocks.

About Sodexo

Sodexo S.A. provides food services and facilities management services worldwide. It offers various on-site services, which includes corporate services, energy and resources, government and agencies, and other services; healthcare and seniors; and learning solutions to schools and universities. The company also provides food services comprising retail service, food delivery, and meal and food vouchers, as well as digital food ordering services; savings and purchase solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. In addition, it offers facility management services, including technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

About BrightView

BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 8,800 office parks and corporate campuses 7,100 residential communities, and 550 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.