Aramark vs UniFirst Which Offers More Value?

Aramark and UniFirst are two companies in the service industry that offer various solutions to businesses. Aramark specializes in providing food, facilities, and uniform services, while UniFirst focuses on supplying workwear and facility services. Both companies have been performing well in the stock market, with Aramark showing steady growth over the years and UniFirst experiencing fluctuations in its stock price. Investors looking to capitalize on the service industry may find these stocks worth considering for their portfolios.

Aramark or UniFirst?

When comparing Aramark and UniFirst, 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 UniFirst.

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 UniFirst has a dividend yield of 0.81%. 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, UniFirst reports a 5-year dividend growth of 27.43% year and a payout ratio of 16.05%.

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 UniFirst's P/E ratio at 25.05. 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 UniFirst's P/B ratio is 1.73.

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 UniFirst's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aramark's ROE at 11.15% and UniFirst's ROE at 7.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $38.47 for Aramark and $201.79 for UniFirst. Over the past year, Aramark's prices ranged from $25.93 to $42.04, with a yearly change of 62.13%. UniFirst's prices fluctuated between $149.58 and $205.28, with a yearly change of 37.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.