Aramark (ARMK) Competitors

Aramark (NYSE:ARMK) and Restaurant Brands International (NYSE:QSR) are both large-cap restaurants, hotels, motels companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation, earnings and media sentiment.

Do analysts recommend ARMK or QSR?

Aramark presently has a consensus price target of $45.44, suggesting a potential upside of 16.13%. Restaurant Brands International has a consensus price target of $76.09, suggesting a potential upside of 16.71%. Given Restaurant Brands International's higher probable upside, analysts clearly believe Restaurant Brands International is more favorable than Aramark.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aramark	0 Sell rating(s)	1 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	3.00
Restaurant Brands International	1 Sell rating(s)	10 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.48

Do institutionals and insiders hold more shares of ARMK or QSR?

82.3% of Restaurant Brands International shares are held by institutional investors. 2.5% of Aramark shares are held by insiders. Comparatively, 1.4% of Restaurant Brands International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has more volatility & risk, ARMK or QSR?

Aramark has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Does the media refer more to ARMK or QSR?

In the previous week, Aramark had 1 more articles in the media than Restaurant Brands International. MarketBeat recorded 28 mentions for Aramark and 27 mentions for Restaurant Brands International. Aramark's average media sentiment score of 0.94 beat Restaurant Brands International's score of 0.88 indicating that Aramark is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Aramark	11 Very Positive mention(s)	1 Positive mention(s)	12 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Restaurant Brands International	14 Very Positive mention(s)	1 Positive mention(s)	9 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ARMK or QSR more profitable?

Restaurant Brands International has a net margin of 10.82% compared to Aramark's net margin of 2.02%. Restaurant Brands International's return on equity of 28.94% beat Aramark's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Aramark	2.02%	15.67%	3.67%
Restaurant Brands International	10.82%	28.94%	5.72%

Which has preferable earnings & valuation, ARMK or QSR?

Restaurant Brands International has lower revenue, but higher earnings than Aramark. Restaurant Brands International is trading at a lower price-to-earnings ratio than Aramark, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aramark	$17.40B	0.59	$262.52M	$1.30	30.10
Restaurant Brands International	$8.41B	2.54	$1.02B	$2.95	22.10

Is ARMK or QSR a better dividend stock?

Aramark pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Restaurant Brands International pays an annual dividend of $2.48 per share and has a dividend yield of 3.8%. Aramark pays out 32.3% of its earnings in the form of a dividend. Restaurant Brands International pays out 84.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aramark has raised its dividend for 1 consecutive years and Restaurant Brands International has raised its dividend for 10 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 11 of the 20 factors compared between the two stocks.