Head-To-Head Analysis: Aramark (NYSE:ARMK) vs. Mitie Group (OTCMKTS:MITFY)

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

Insider & Institutional Ownership

0.2% of Mitie Group shares are owned by institutional investors. 2.8% of Aramark shares are owned by company insiders. Comparatively, 0.8% of Mitie Group shares are owned 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.

Analyst Ratings

This is a breakdown of current recommendations for Aramark and Mitie Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aramark	0	2	11	0	2.85
Mitie Group	0	0	0	1	4.00

Aramark currently has a consensus target price of $54.50, indicating a potential upside of 1.27%. Given Aramark’s higher probable upside, analysts plainly believe Aramark is more favorable than Mitie Group.

Earnings and Valuation

This table compares Aramark and Mitie Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aramark	$18.51 billion	0.76	$326.39 million	$1.34	40.16
Mitie Group	$7.53 billion	0.40	$121.04 million	N/A	N/A

Aramark has higher revenue and earnings than Mitie Group.

Dividends

Aramark pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Mitie Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. Aramark pays out 35.8% of its earnings in the form of a dividend. Aramark has increased its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aramark	1.84%	17.05%	4.02%
Mitie Group	N/A	N/A	N/A

Risk & Volatility

Aramark has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Mitie Group has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Summary

Aramark beats Mitie Group on 11 of the 16 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 Mitie Group

Mitie Group plc, together with its subsidiaries, provides facilities management and professional services in the United Kingdom and internationally. The company operates in four segments: Business Services, Technical Services, Central Government & Defense (CG&D), Communities. The company provides decarbonization, electrical grid connections, emission intelligence, energy and carbon, EV fleets, and heat solutions, as well as solar energy; cleaning and hygiene, engineering maintenance, integrated facilities management, landscape, and waste management services; project and workplace services; and Fire & security systems, front of house, intelligence, vetting, and security guarding service. It serves to financial, professional, life science, manufacturing, media, telecom and tech, retail, shopping centres, transport, utilities, central and local government, critical environment, defence, education, healthcare, and justice and immigration sectors. The company was incorporated in 1936 and is headquartered in London, the United Kingdom.