Aramark vs Compass Which Is Superior?

Aramark and Compass Group are two leading players in the food services industry, both with global reach and diversified service offerings. Aramark boasts a strong presence in the education, healthcare, and sports sectors, while Compass Group is a dominant force in the contract catering and hospitality markets. Investors looking to capitalize on the food services industry may consider comparing the stock performance of Aramark and Compass Group to make informed investment decisions.

Aramark or Compass?

When comparing Aramark and Compass, 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 Compass.

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 0.97%, while Compass has a dividend yield of -%. 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 38.05%. On the other hand, Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%.

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 40.61 and Compass's P/E ratio at -17.67. 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 3.51 while Compass's P/B ratio is 8.16.

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 Compass's is 3.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aramark's ROE at 8.96% and Compass's ROE at -49.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $40.15 for Aramark and $6.88 for Compass. Over the past year, Aramark's prices ranged from $27.05 to $42.49, with a yearly change of 57.08%. Compass's prices fluctuated between $2.78 and $7.69, with a yearly change of 176.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.