Aramark (ARMK) vs Cintas Corporation (CTAS)

Aramark and Cintas Corporation are both Specialty Business Services companies. Cintas Corporation is the larger, with a market value of $79.0B against $14.3B — 5.5× the size. Aramark trades at the lower P/E: 37.6× against 39.0×. Aramark grew revenue faster over the last twelve months: 11.0% against 9.51%. Cintas Corporation has the higher net margin (17.8% vs 1.93%) and the higher return on invested capital (22.8% vs 6.03%). Both pay a dividend; Aramark yields more (1.37% vs 0.82%). Across the 22 metrics below, Cintas Corporation leads on 13 and Aramark on 9.

Valuation

Metric ARMK CTAS Specialty Business Services median
P/E 37.62 38.98 23.86
P/S 0.73 6.92 1.06
P/B 4.27 15.37 2.37
Price to free cash flow n/m 39.34 16.54
EV/EBITDA 14.47 26.34 11.51
EV/Sales 1.01 7.11 1.51
Earnings yield 2.66% 2.57% 2.14%
Free cash flow yield (12.19%) 2.54% 1.55%

Profitability

Metric ARMK CTAS Specialty Business Services median
Gross margin 8.51% 50.99% 35.31%
Operating margin 4.39% 23.36% 3.43%
Net margin 1.93% 17.78% 1.67%
Free cash flow margin 2.34% 17.59% 3.28%
Return on equity 11.82% 41.28% 0.58%
Return on assets 2.81% 20.07% 0.33%
Return on invested capital 6.03% 22.84% 0.65%

Growth

Metric ARMK CTAS Specialty Business Services median
Revenue growth (TTM) 11.02% 9.51% 6.04%
EPS growth (last fiscal year) 23.23% 11.59% —
Revenue growth, 5-year CAGR 7.60% 9.62% 7.66%
Net income growth, 5-year CAGR 0.00% 12.56% 0.00%

Health

Metric ARMK CTAS Specialty Business Services median
Debt to equity 1.81 0.47 0.21
Current ratio 1.28 1.45 1.62
Net debt to EBITDA 3.76 0.69 1.16

Dividend

Metric ARMK CTAS Specialty Business Services median
Dividend yield 1.37% 0.82% 1.61%
Payout ratio 0.21 0.36 0.00

Size

Metric ARMK CTAS Specialty Business Services median
Market cap 14.32b 79.02b 879.14m

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