Aramark (ARMK) vs RELX PLC (RELX)

Aramark and RELX PLC are both Specialty Business Services companies. RELX PLC is the larger, with a market value of $58.1B against $14.3B — 4.1× the size. RELX PLC trades at the lower P/E: 15.3× against 37.6×. Aramark grew revenue faster over the last twelve months: 11.0% against 10.3%. RELX PLC has the higher net margin (19.7% vs 1.93%) and the lower return on invested capital (0.00% vs 6.03%). Both pay a dividend; RELX PLC yields more (1.76% vs 1.37%). Across the 20 metrics below, Aramark leads on 10 and RELX PLC on 10.

Valuation

Metric ARMK RELX Specialty Business Services median
P/E 37.62 15.33 23.86
P/S 0.73 n/m 1.06
P/B 4.27 n/m 2.37
Price to free cash flow n/m n/m 16.54
EV/EBITDA 14.47 1.51 11.51
EV/Sales 1.01 0.55 1.51
Earnings yield 2.66% 6.52% 2.14%
Free cash flow yield (12.19%) 0.00% 1.55%

Profitability

Metric ARMK RELX Specialty Business Services median
Gross margin 8.51% 60.78% 35.31%
Operating margin 4.39% 0.00% 3.43%
Net margin 1.93% 19.65% 1.67%
Free cash flow margin 2.34% 0.00% 3.28%
Return on equity 11.82% 0.00% 0.58%
Return on assets 2.81% 0.00% 0.33%
Return on invested capital 6.03% 0.00% 0.65%

Growth

Metric ARMK RELX Specialty Business Services median
Revenue growth (TTM) 11.02% 10.29% 6.04%
EPS growth (last fiscal year) 23.23% 12.12% —
Revenue growth, 5-year CAGR 7.60% 6.73% 7.66%
Net income growth, 5-year CAGR 0.00% 11.62% 0.00%

Health

Metric ARMK RELX Specialty Business Services median
Debt to equity 1.81 7.10 0.21
Current ratio 1.28 0.45 1.62
Net debt to EBITDA 3.76 1.89 1.16

Dividend

Metric ARMK RELX Specialty Business Services median
Dividend yield 1.37% 1.76% 1.61%
Payout ratio 0.21 0.58 0.00

Size

Metric ARMK RELX Specialty Business Services median
Market cap 14.32b 58.14b 879.14m

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