WallStSmart

Aramark Holdings (ARMK)vsDolby Laboratories (DLB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Aramark Holdings generates 1365% more annual revenue ($19.85B vs $1.35B). DLB leads profitability with a 16.7% profit margin vs 1.9%. ARMK appears more attractively valued with a PEG of 0.88. ARMK earns a higher WallStSmart Score of 64/100 (C+).

ARMK

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 5.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 1.82

DLB

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 6.5Value: 6.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARMKSignificantly Overvalued (-44.8%)

Margin of Safety

-44.8%

Fair Value

$39.30

Current Price

$58.55

$19.25 premium

UndervaluedFair: $39.30Overvalued
DLBUndervalued (+35.1%)

Margin of Safety

+35.1%

Fair Value

$106.46

Current Price

$64.48

$41.98 discount

UndervaluedFair: $106.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARMK2 strengths · Avg: 8.0/10
PEG RatioValuation
0.888/10

Growing faster than its price suggests

EPS GrowthGrowth
33.3%8/10

Earnings expanding 33.3% YoY

DLB3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.8510/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

ARMK4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Debt/EquityHealth
1.913/10

Elevated debt levels

DLB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
26.5x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARMK

The strongest argument for ARMK centers on PEG Ratio, EPS Growth. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bull Case : DLB

The strongest argument for DLB centers on Debt/Equity, Altman Z-Score, Price/Book. Profitability is solid with margins at 16.7% and operating margin at 12.6%.

Bear Case : ARMK

The primary concerns for ARMK are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 40.3x leaves little room for execution misses. Debt-to-equity of 1.91 is elevated, increasing financial risk.

Bear Case : DLB

The primary concerns for DLB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

ARMK profiles as a value stock while DLB is a declining 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 9.3% — sustainability is the question.

DLB generates stronger free cash flow (148M), providing more financial flexibility.

Bottom Line

ARMK scores higher overall (64/100 vs 44/100). DLB offers better value entry with a 35.1% margin of safety. Both earn "Buy" and "Hold" 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.

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Dolby Laboratories

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Dolby Laboratories, Inc. creates imaging and audio technologies that transform entertainment and communications in the theater, home, work, and mobile devices. The company is headquartered in San Francisco, California.

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