Aramark vs Vestis Which Performs Better?

Aramark and Vestis are two leading companies in the stock market, each with its own unique set of offerings and investment opportunities. Aramark is a global provider of food, facilities, and uniform services, catering to various industries including healthcare, education, and sports. Vestis, on the other hand, is a retail company specializing in outdoor and recreation brands such as Sports Authority and Eastern Mountain Sports. Both companies have shown strong performance in recent years, making them attractive options for investors looking for stability and growth potential in their portfolios.

Aramark or Vestis?

When comparing Aramark and Vestis, 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 Vestis.

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 Vestis has a dividend yield of 0.87%. 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, Vestis reports a 5-year dividend growth of 0.00% year and a payout ratio of 82.85%.

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 Vestis's P/E ratio at 100.70. 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 Vestis's P/B ratio is 2.34.

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 Vestis's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aramark's ROE at 8.96% and Vestis's ROE at 2.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $39.81 for Aramark and $16.05 for Vestis. Over the past year, Aramark's prices ranged from $27.05 to $42.49, with a yearly change of 57.08%. Vestis's prices fluctuated between $8.92 and $22.37, with a yearly change of 150.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.