UniFirst vs Aramark Which Performs Better?

UniFirst Corporation and Aramark Corporation are two prominent companies in the textile services industry. Both companies provide various services such as uniform rental, facility services, and safety products to businesses across different sectors. When comparing their stock performances, UniFirst has shown consistent growth over the years, while Aramark has experienced fluctuations due to changing market conditions. Investors are closely monitoring these stocks to assess their financial stability and potential for long-term growth in the competitive textile services industry.

UniFirst or Aramark?

When comparing UniFirst 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 UniFirst 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. UniFirst has a dividend yield of 0.69%, while Aramark has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UniFirst reports a 5-year dividend growth of 27.43% year and a payout ratio of 16.05%. 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 UniFirst P/E ratio at 23.92 and Aramark's P/E ratio at 40.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UniFirst P/B ratio is 1.65 while Aramark's P/B ratio is 3.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UniFirst has seen a 5-year revenue growth of 0.45%, while Aramark's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UniFirst's ROE at 7.03% and Aramark's ROE at 8.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $193.50 for UniFirst and $39.98 for Aramark. Over the past year, UniFirst's prices ranged from $149.58 to $208.20, with a yearly change of 39.19%. Aramark's prices fluctuated between $26.58 and $42.49, with a yearly change of 59.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.