ARMK vs. QSR, DRI, YUMC, TXRH, WING, CAVA, MAIN, SG, EAT, and PLAY
Should you be buying Aramark stock or one of its competitors? The main competitors of Aramark include Restaurant Brands International (QSR), Darden Restaurants (DRI), Yum China (YUMC), Texas Roadhouse (TXRH), Wingstop (WING), CAVA Group (CAVA), Main Street Capital (MAIN), Sweetgreen (SG), Brinker International (EAT), and Dave & Buster's Entertainment (PLAY). These companies are all part of the "eating places" industry.
Restaurant Brands International (NYSE:QSR) and Aramark (NYSE:ARMK) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, media sentiment, analyst recommendations, dividends, risk, community ranking and institutional ownership.
Restaurant Brands International received 229 more outperform votes than Aramark when rated by MarketBeat users. However, 62.23% of users gave Aramark an outperform vote while only 60.67% of users gave Restaurant Brands International an outperform vote.
Restaurant Brands International has a net margin of 17.17% compared to Restaurant Brands International's net margin of 3.43%. Aramark's return on equity of 31.12% beat Restaurant Brands International's return on equity.
Restaurant Brands International has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Aramark has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
In the previous week, Restaurant Brands International had 3 more articles in the media than Aramark. MarketBeat recorded 11 mentions for Restaurant Brands International and 8 mentions for Aramark. Restaurant Brands International's average media sentiment score of 1.36 beat Aramark's score of 0.92 indicating that Aramark is being referred to more favorably in the news media.
82.3% of Restaurant Brands International shares are owned by institutional investors. 1.4% of Restaurant Brands International shares are owned by insiders. Comparatively, 1.9% of Aramark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Restaurant Brands International has higher earnings, but lower revenue than Aramark. Aramark is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.
Restaurant Brands International currently has a consensus price target of $83.18, indicating a potential upside of 20.93%. Aramark has a consensus price target of $33.32, indicating a potential upside of 0.21%. Given Aramark's higher possible upside, equities research analysts plainly believe Restaurant Brands International is more favorable than Aramark.
Restaurant Brands International pays an annual dividend of $2.32 per share and has a dividend yield of 3.4%. Aramark pays an annual dividend of $0.38 per share and has a dividend yield of 1.1%. Restaurant Brands International pays out 59.8% of its earnings in the form of a dividend. Aramark pays out 16.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Restaurant Brands International has raised its dividend for 9 consecutive years. Restaurant Brands International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Restaurant Brands International beats Aramark on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ARMK and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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