Aramark (ARMK) vs First Advantage Corporation (FA)

Aramark and First Advantage Corporation are both Specialty Business Services companies. Aramark is the larger, with a market value of $14.4B against $3.8B — 3.8× the size. Aramark trades at the lower P/E: 37.4× against 150×. First Advantage Corporation grew revenue faster over the last twelve months: 32.9% against 11.0%. Aramark has the higher net margin (1.93% vs 1.51%) and the higher return on invested capital (6.03% vs 3.59%). Across the 20 metrics below, First Advantage Corporation leads on 11 and Aramark on 9.

Valuation

Metric ARMK FA Specialty Business Services median
P/E 37.36 150.38 25.69
P/S 0.72 2.25 1.17
P/B 4.24 2.89 2.31
Price to free cash flow n/m 19.15 16.50
EV/EBITDA 14.40 12.84 11.75
EV/Sales 1.01 3.34 1.57
Earnings yield 2.68% 0.66% 1.74%
Free cash flow yield (12.28%) 5.22% 1.23%

Profitability

Metric ARMK FA Specialty Business Services median
Gross margin 8.51% 45.22% 32.79%
Operating margin 4.39% 10.68% 3.53%
Net margin 1.93% 1.51% 1.82%
Free cash flow margin 2.34% 11.75% 3.00%
Return on equity 11.82% 1.94% 0.00%
Return on assets 2.81% 0.66% 0.00%
Return on invested capital 6.03% 3.59% 0.65%

Growth

Metric ARMK FA Specialty Business Services median
Revenue growth (TTM) 11.02% 32.89% 4.55%
EPS growth (last fiscal year) 23.23% 72.97% 5.60%
Revenue growth, 5-year CAGR 7.60% 25.33% 7.66%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARMK FA Specialty Business Services median
Debt to equity 1.81 1.57 0.24
Current ratio 1.28 2.53 1.77
Net debt to EBITDA 3.76 4.75 0.69

Dividend

Metric ARMK FA Specialty Business Services median
Dividend yield 0.88% — 2.29%
Payout ratio 0.34 — 0.42

Size

Metric ARMK FA Specialty Business Services median
Market cap 14.40b 3.75b 757.81m

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