Cintas vs Aramark Which Is More Favorable?

Cintas Corporation and Aramark Corporation are two companies that operate in the uniform and facility services industry. Both companies have a strong presence in the market and have shown consistent growth over the years. Cintas has a well-established reputation for quality and innovation, while Aramark has a diverse range of services that cater to various industries. Investors interested in the uniform and facility services sector may find it beneficial to compare the stocks of these two companies to make informed investment decisions.

Cintas or Aramark?

When comparing Cintas and Aramark, 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 Cintas and Aramark.

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. Cintas has a dividend yield of 2.5%, while Aramark has a dividend yield of 0.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cintas reports a 5-year dividend growth of 19.52% year and a payout ratio of 33.66%. On the other hand, Aramark reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.97%.

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 Cintas P/E ratio at 55.17 and Aramark's P/E ratio at 29.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cintas P/B ratio is 22.48 while Aramark's P/B ratio is 3.46.

Growth Investors:

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

Retail Investors:

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