Analyzing Aramark (NYSE:ARMK) & CAPITA (OTCMKTS:CTAGY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aramark	2.02%	15.67%	3.67%
CAPITA	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aramark and CAPITA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aramark	0	1	8	1	3.00
CAPITA	0	0	0	0	0.00

Aramark currently has a consensus target price of $45.4444, indicating a potential upside of 14.79%. Given Aramark’s stronger consensus rating and higher possible upside, research analysts plainly believe Aramark is more favorable than CAPITA.

Volatility and Risk

Aramark has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, CAPITA has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500.

Valuation & Earnings

This table compares Aramark and CAPITA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aramark	$17.87 billion	0.58	$262.52 million	$1.35	29.33
CAPITA	$3.09 billion	0.15	$98.01 million	N/A	N/A

Aramark has higher revenue and earnings than CAPITA.

Summary

Aramark beats CAPITA on 11 of the 11 factors compared between the two stocks.

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.

About CAPITA

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.