Analyzing Aramark (NYSE:ARMK) & DCC (OTCMKTS:DCCPF)

DCC (OTCMKTS:DCCPF) and Aramark (NYSE:ARMK) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Risk & Volatility

DCC has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Aramark has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares DCC and Aramark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DCC	N/A	N/A	N/A
Aramark	1.69%	16.15%	3.75%

Analyst Ratings

This is a summary of recent ratings for DCC and Aramark, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DCC	1	0	1	0	2.00
Aramark	0	2	7	0	2.78

Aramark has a consensus price target of $48.38, suggesting a potential upside of 15.48%. Given Aramark’s stronger consensus rating and higher probable upside, analysts plainly believe Aramark is more favorable than DCC.

Earnings and Valuation

This table compares DCC and Aramark”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DCC	$22.98 billion	0.30	$263.46 million	N/A	N/A
Aramark	$18.51 billion	0.59	$326.39 million	$1.19	35.20

Aramark has lower revenue, but higher earnings than DCC.

Summary

Aramark beats DCC on 9 of the 10 factors compared between the two stocks.

About DCC

DCC plc provides sales, marketing, and support services worldwide. The company operates through DCC Energy, DCC Healthcare, and DCC Technology segments. It sells and markets liquefied petroleum gas (LPG), refrigerants, and natural gas; markets, sells, and retails transport and commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides logistics services. It also offers products and services to healthcare providers, and health and beauty brand owners; contract manufacturing services to the health and beauty sector; nutrition products, such as vitamins and health supplements; beauty products; and product development, formulation, manufacturing, and packaging services. In, addition it distributes consumer technology products, including smart home products, peripherals and software, and accessories, as well as provides supply chain services. The company was founded in 1976 and is headquartered in Dublin, Ireland.

About Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, capital program management, payment services, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.