Aramark vs Cintas Which Performs Better?

Aramark and Cintas are two well-known companies in the service industry that offer diverse solutions to businesses and organizations. Aramark specializes in providing food, facilities management, and uniforms services, while Cintas focuses on uniform rental, cleaning supplies, and safety products. Both companies are publicly traded on the stock market, and investors often compare their performance and growth potential. This comparison provides insights into the strengths and weaknesses of each company, helping investors make informed decisions about their investment strategies.

Aramark or Cintas?

When comparing Aramark and Cintas, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aramark and Cintas.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aramark has a dividend yield of 0.98%, while Cintas has a dividend yield of 2.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aramark reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.97%. On the other hand, Cintas reports a 5-year dividend growth of 19.52% year and a payout ratio of 33.66%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aramark P/E ratio at 29.48 and Cintas's P/E ratio at 55.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aramark P/B ratio is 3.46 while Cintas's P/B ratio is 22.48.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aramark has seen a 5-year revenue growth of 0.13%, while Cintas's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aramark's ROE at 11.15% and Cintas's ROE at 39.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $38.47 for Aramark and $223.80 for Cintas. Over the past year, Aramark's prices ranged from $25.93 to $42.04, with a yearly change of 62.13%. Cintas's prices fluctuated between $132.65 and $227.35, with a yearly change of 71.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.