Aramark (ARMK) Competitors

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

Do analysts recommend QSR or ARMK?

Restaurant Brands International currently has a consensus price target of $75.04, suggesting a potential upside of 17.43%. Aramark has a consensus price target of $45.44, suggesting a potential upside of 20.18%. Given Aramark's stronger consensus rating and higher possible upside, analysts plainly believe Aramark is more favorable than Restaurant Brands International.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Restaurant Brands International	1 Sell rating(s)	12 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.42
Aramark	0 Sell rating(s)	1 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	3.00

Is QSR or ARMK more profitable?

Restaurant Brands International has a net margin of 9.43% compared to Aramark's net margin of 2.02%. Restaurant Brands International's return on equity of 29.54% beat Aramark's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Restaurant Brands International	9.43%	29.54%	5.83%
Aramark	2.02%	15.67%	3.67%

Does the media prefer QSR or ARMK?

In the previous week, Restaurant Brands International had 9 more articles in the media than Aramark. MarketBeat recorded 14 mentions for Restaurant Brands International and 5 mentions for Aramark. Aramark's average media sentiment score of 1.24 beat Restaurant Brands International's score of 0.59 indicating that Aramark is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Restaurant Brands International	6 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Aramark	3 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher earnings and valuation, QSR or ARMK?

Restaurant Brands International has higher earnings, but lower revenue 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
Restaurant Brands International	$9.11B	2.30	$1.02B	$2.64	24.21
Aramark	$17.87B	0.56	$262.52M	$1.35	28.01

Is QSR or ARMK a better dividend stock?

Restaurant Brands International pays an annual dividend of $2.48 per share and has a dividend yield of 3.9%. Aramark pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Restaurant Brands International pays out 93.9% 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 pays out 31.1% of its earnings in the form of a dividend. Restaurant Brands International has increased its dividend for 10 consecutive years and Aramark has increased its dividend for 1 consecutive years. Restaurant Brands International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

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

82.3% of Restaurant Brands International shares are held by institutional investors. 1.3% of Restaurant Brands International shares are held by insiders. Comparatively, 2.5% of Aramark shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Which has more volatility and risk, QSR or ARMK?

Restaurant Brands International has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Aramark has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Summary

Restaurant Brands International beats Aramark on 11 of the 20 factors compared between the two stocks.