ARMK vs. QSR, DRI, YUMC, TXRH, WING, CAVA, MAIN, SG, EAT, and ARCO
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 Arcos Dorados (ARCO). These companies are all part of the "eating places" industry.
Aramark (NYSE:ARMK) and Restaurant Brands International (NYSE:QSR) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, community ranking, media sentiment, dividends, valuation, analyst recommendations and profitability.
82.3% of Restaurant Brands International shares are owned by institutional investors. 1.9% of Aramark shares are owned by company insiders. Comparatively, 1.4% of Restaurant Brands International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
In the previous week, Restaurant Brands International had 11 more articles in the media than Aramark. MarketBeat recorded 17 mentions for Restaurant Brands International and 6 mentions for Aramark. Restaurant Brands International's average media sentiment score of 0.51 beat Aramark's score of 0.51 indicating that Restaurant Brands International is being referred to more favorably in the news media.
Restaurant Brands International has a net margin of 17.17% compared to Aramark's net margin of 3.43%. Restaurant Brands International's return on equity of 31.12% beat Aramark's return on equity.
Aramark pays an annual dividend of $0.38 per share and has a dividend yield of 1.2%. Restaurant Brands International pays an annual dividend of $2.32 per share and has a dividend yield of 3.4%. Aramark pays out 16.0% of its earnings in the form of a dividend. Restaurant Brands International pays out 59.8% 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.
Aramark presently has a consensus target price of $33.32, suggesting a potential upside of 3.61%. Restaurant Brands International has a consensus target price of $83.18, suggesting a potential upside of 21.29%. Given Restaurant Brands International's higher possible upside, analysts plainly believe Restaurant Brands International is more favorable than Aramark.
Aramark has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
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 lower revenue, but higher earnings 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.
Summary
Restaurant Brands International beats Aramark on 14 of the 20 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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