Aramark Holdings (ARMK)vsCintas Corporation (CTAS)
ARMK
Aramark Holdings
$53.37
-0.48%
INDUSTRIALS · Cap: $14.27B
CTAS
Cintas Corporation
$179.85
-0.06%
INDUSTRIALS · Cap: $69.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Aramark Holdings generates 76% more annual revenue ($19.41B vs $11.03B). CTAS leads profitability with a 17.6% profit margin vs 1.8%. ARMK appears more attractively valued with a PEG of 0.94. ARMK earns a higher WallStSmart Score of 66/100 (B-).
ARMK
Strong Buy66
out of 100
Grade: B-
CTAS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-72.7%
Fair Value
$31.42
Current Price
$53.37
$21.95 premium
Margin of Safety
-38.5%
Fair Value
$144.61
Current Price
$179.85
$35.24 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 65.2% YoY
Growing faster than its price suggests
Every $100 of equity generates 40 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 23.2%
Areas to Watch
Grey zone — moderate risk
1.8% margin — thin
Operating margin of 4.6%
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 15.0x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ARMK
The strongest argument for ARMK centers on EPS Growth, PEG Ratio. Revenue growth of 14.7% demonstrates continued momentum. PEG of 0.94 suggests the stock is reasonably priced for its growth.
Bull Case : CTAS
The strongest argument for CTAS centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 17.6% and operating margin at 23.2%.
Bear Case : ARMK
The primary concerns for ARMK are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 40.5x leaves little room for execution misses. Debt-to-equity of 1.96 is elevated, increasing financial risk.
Bear Case : CTAS
The primary concerns for CTAS are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
ARMK profiles as a value stock while CTAS is a mature play — different risk/reward profiles.
ARMK carries more volatility with a beta of 1.19 — expect wider price swings.
ARMK is growing revenue faster at 14.7% — sustainability is the question.
CTAS generates stronger free cash flow (531M), providing more financial flexibility.
Bottom Line
ARMK scores higher overall (66/100 vs 58/100) and 14.7% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Aramark Holdings
INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA
Aramark provides uniform food, facilities, and services to education, health, business and industrial, sports, recreation, and correctional clients in the United States and internationally. The company is headquartered in Philadelphia, Pennsylvania.
Visit Website →Cintas Corporation
INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA
Cintas Corporation is an American corporation headquartered in Cincinnati, Ohio, which provides a range of products and services to businesses including uniforms, mats, mops, cleaning and restroom supplies, first aid and safety products, fire extinguishers and testing, and safety courses.
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