Aramark vs Taylor Morrison Home Which Should You Buy?

Aramark and Taylor Morrison Home Corporation are two well-known companies in their respective industries. Aramark is a global provider of food services, facilities management, and uniforms, while Taylor Morrison Home is a leading homebuilder in the United States. Both companies have seen fluctuating stock performances in recent years, with Aramark facing challenges in the foodservice industry and Taylor Morrison Home benefiting from the strong housing market. Investors should carefully evaluate the financial health and growth potential of these two companies before making any investment decisions.

Aramark or Taylor Morrison Home?

When comparing Aramark and Taylor Morrison Home, 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 Taylor Morrison Home.

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 Taylor Morrison Home 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, Taylor Morrison Home reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 40.38 and Taylor Morrison Home's P/E ratio at 8.29. 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 3.49 while Taylor Morrison Home's P/B ratio is 1.18.

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 Taylor Morrison Home's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aramark's ROE at 8.96% and Taylor Morrison Home's ROE at 14.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $39.81 for Aramark and $64.24 for Taylor Morrison Home. Over the past year, Aramark's prices ranged from $27.05 to $42.49, with a yearly change of 57.08%. Taylor Morrison Home's prices fluctuated between $50.00 and $75.49, with a yearly change of 50.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.