Aramark Holdings (ARMK)vsCintas Corporation (CTAS)
ARMK
Aramark Holdings
$56.02
+0.83%
INDUSTRIALS · Cap: $14.57B
CTAS
Cintas Corporation
$212.81
-0.93%
INDUSTRIALS · Cap: $84.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Aramark Holdings generates 72% more annual revenue ($19.85B vs $11.56B). CTAS leads profitability with a 17.8% profit margin vs 1.9%. ARMK appears more attractively valued with a PEG of 0.87. ARMK earns a higher WallStSmart Score of 64/100 (C+).
ARMK
Buy64
out of 100
Grade: C+
CTAS
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-33.1%
Fair Value
$39.48
Current Price
$56.02
$16.54 premium
Margin of Safety
-30.3%
Fair Value
$153.72
Current Price
$212.81
$59.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 33.3% YoY
Every $100 of equity generates 40 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 24.1%
Areas to Watch
Premium valuation, high expectations priced in
Grey zone — moderate risk
1.9% margin — thin
Operating margin of 4.4%
Trading at 16.3x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ARMK
The strongest argument for ARMK centers on PEG Ratio, EPS Growth. PEG of 0.87 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 17.8% and operating margin at 24.1%. Revenue growth of 10.9% demonstrates continued momentum.
Bear Case : ARMK
The primary concerns for ARMK are P/E Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 1.91 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Bear Case : CTAS
The primary concerns for CTAS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 41.9x leaves little room for execution misses.
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 1.20 — expect wider price swings.
CTAS is growing revenue faster at 10.9% — sustainability is the question.
CTAS generates stronger free cash flow (465M), providing more financial flexibility.
Bottom Line
ARMK scores higher overall (64/100 vs 62/100). 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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