Head-To-Head Survey: APi Group (NYSE:APG) vs. Aramark (NYSE:ARMK)

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

Earnings and Valuation

This table compares Aramark and APi Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aramark	$18.51 billion	0.53	$326.39 million	$1.22	30.57
APi Group	$7.02 billion	2.37	$250.00 million	$0.37	107.92

Aramark has higher revenue and earnings than APi Group. Aramark is trading at a lower price-to-earnings ratio than APi Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.6% of APi Group shares are held by institutional investors. 2.5% of Aramark shares are held by company insiders. Comparatively, 17.0% of APi Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Aramark has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, APi Group has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aramark	1.76%	16.39%	3.83%
APi Group	3.44%	21.86%	8.08%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aramark and APi Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aramark	0	2	4	1	2.86
APi Group	0	2	7	0	2.78

Aramark presently has a consensus price target of $45.67, suggesting a potential upside of 22.43%. APi Group has a consensus price target of $38.81, suggesting a potential downside of 2.81%. Given Aramark’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Aramark is more favorable than APi Group.

Summary

APi Group beats Aramark on 9 of the 15 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 APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.