Taylor Morrison Home vs Aramark Which Is a Better Investment?

Taylor Morrison Home Corporation (TMHC) and Aramark Corporation (ARMK) are two prominent companies in the housing construction and services industries, respectively. Taylor Morrison focuses on the design, construction, and sale of single-family homes and townhomes, while Aramark provides food services, facilities management, and uniform services to a variety of industries. Both companies have shown growth potential in their respective sectors, making them attractive options for investors looking to diversify their portfolios. In this comparison, we will analyze the performance and prospects of Taylor Morrison Home vs Aramark stocks.

Taylor Morrison Home or Aramark?

When comparing Taylor Morrison Home 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 Taylor Morrison Home 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. Taylor Morrison Home has a dividend yield of -%, while Aramark has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Taylor Morrison Home reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Aramark reports a 5-year dividend growth of 0.00% year and a payout ratio of 38.05%.

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 Taylor Morrison Home P/E ratio at 8.60 and Aramark's P/E ratio at 40.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Taylor Morrison Home P/B ratio is 1.23 while Aramark's P/B ratio is 3.51.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Taylor Morrison Home has seen a 5-year revenue growth of 0.81%, while Aramark's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Taylor Morrison Home's ROE at 14.81% and Aramark's ROE at 8.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $66.35 for Taylor Morrison Home and $40.15 for Aramark. Over the past year, Taylor Morrison Home's prices ranged from $49.98 to $75.49, with a yearly change of 51.04%. Aramark's prices fluctuated between $27.05 and $42.49, with a yearly change of 57.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.