Aramark Holdings (ARMK)vsCintas Corporation (CTAS)
ARMK
Aramark Holdings
$41.47
+3.08%
INDUSTRIALS · Cap: $10.57B
CTAS
Cintas Corporation
$176.85
-0.72%
INDUSTRIALS · Cap: $70.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Aramark Holdings generates 74% more annual revenue ($18.79B vs $10.79B). CTAS leads profitability with a 17.6% profit margin vs 1.7%. ARMK appears more attractively valued with a PEG of 1.00. CTAS earns a higher WallStSmart Score of 60/100 (C+).
ARMK
Buy54
out of 100
Grade: C-
CTAS
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-421.5%
Fair Value
$8.09
Current Price
$41.47
$33.38 premium
Margin of Safety
-78.1%
Fair Value
$112.48
Current Price
$176.85
$64.37 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Growing faster than its price suggests
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 23.4%
Areas to Watch
Premium valuation, high expectations priced in
Grey zone — moderate risk
1.7% margin — thin
Operating margin of 4.5%
Premium valuation, high expectations priced in
Trading at 15.2x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ARMK
The strongest argument for ARMK centers on Debt/Equity, PEG Ratio. PEG of 1.00 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 23.4%.
Bear Case : ARMK
The primary concerns for ARMK are P/E Ratio, Altman Z-Score, Profit Margin. Thin 1.7% margins leave little buffer for downturns.
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 1.15 — expect wider price swings.
CTAS is growing revenue faster at 9.3% — sustainability is the question.
CTAS generates stronger free cash flow (425M), providing more financial flexibility.
Bottom Line
CTAS scores higher overall (60/100 vs 54/100), backed by strong 17.6% margins. Both earn "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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