Aramark (ARMK) vs Unifirst Corporation (UNF)

Aramark and Unifirst Corporation are both Specialty Business Services companies. Aramark is the larger, with a market value of $14.3B against $4.5B — 3.2× the size. Aramark trades at the lower P/E: 37.6× against 39.1×. Aramark grew revenue faster over the last twelve months: 11.0% against 1.42%. Unifirst Corporation has the higher net margin (4.65% vs 1.93%) and the lower return on invested capital (4.43% vs 6.03%). Both pay a dividend; Aramark yields more (1.37% vs 0.75%). Across the 22 metrics below, Aramark leads on 11 and Unifirst Corporation on 11.

Valuation

Metric ARMK UNF Specialty Business Services median
P/E 37.62 39.14 23.86
P/S 0.73 1.88 1.06
P/B 4.27 2.13 2.37
Price to free cash flow n/m 52.66 16.54
EV/EBITDA 14.47 15.81 11.51
EV/Sales 1.01 1.81 1.51
Earnings yield 2.66% 2.56% 2.14%
Free cash flow yield (12.19%) 1.90% 1.55%

Profitability

Metric ARMK UNF Specialty Business Services median
Gross margin 8.51% 36.68% 35.31%
Operating margin 4.39% 5.77% 3.43%
Net margin 1.93% 4.65% 1.67%
Free cash flow margin 2.34% 3.57% 3.28%
Return on equity 11.82% 5.30% 0.58%
Return on assets 2.81% 4.15% 0.33%
Return on invested capital 6.03% 4.43% 0.65%

Growth

Metric ARMK UNF Specialty Business Services median
Revenue growth (TTM) 11.02% 1.42% 6.04%
EPS growth (last fiscal year) 23.23% 2.70% —
Revenue growth, 5-year CAGR 7.60% 6.16% 7.66%
Net income growth, 5-year CAGR 0.00% 1.78% 0.00%

Health

Metric ARMK UNF Specialty Business Services median
Debt to equity 1.81 0.00 0.21
Current ratio 1.28 3.11 1.62
Net debt to EBITDA 3.76 (0.64) 1.16

Dividend

Metric ARMK UNF Specialty Business Services median
Dividend yield 1.37% 0.75% 1.61%
Payout ratio 0.21 0.23 0.00

Size

Metric ARMK UNF Specialty Business Services median
Market cap 14.32b 4.48b 879.14m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack