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How Does Aramark Compare with Its Peers?

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Aramark and its peers

In this article, we’ll compare Aramark with its peers:

  • The PE (price-to-earnings) ratios of Aramark (ARMK), Cintas Corporation (CTAS), UniFirst (UNF), and ABM Industries (ABM) are 35.9x, 26.6x, 17.3x, and 25.5x, respectively, as of November 18, 2015.

  • The PBV (price-to-book value) ratios of Aramark, Cintas, UniFirst, and ABM are 4.2x, 5.5x, 1.7x, and 1.7x, respectively.
  • The PS (price-to-sales) ratios of Aramark, Cintas, UniFirst, and ABM are 0.53x, 2.2x, 1.5x, and 0.31x, respectively.

According to the above findings, Aramark’s peers are ahead of the company based on PS. However, Aramark has outperformed its peers based on PE and PBV.

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ETFs that invest in Aramark

The Renaissance IPO ETF (IPO) invests 2.1% of its holdings in Aramark. The ETF tracks a market-cap-weighted index of recent US-listed IPOs. The fund acquires issues within 90 days or sooner after an IPO and sells after two years.

The First Trust Consumer Discretionary AlphaDEX ETF (FXD) invests 0.79% of its holdings in Aramark. The ETF tracks an index of large and mid-cap US consumer discretionary stocks. The underlying index uses multifactor selection and tiered equal weighting.

The First Trust US IPO (FPX) invests 0.65% of its holdings in Aramark. The ETF tracks a market-cap-weighted index of the 100 largest US IPOs over the first 1,000 trading days of each stock. Stocks must pass additional quantitative screens to make it into the index.

The iShares Morningstar Mid-Cap ETF (JKG) invests 0.45% of its holdings in Aramark. The ETF tracks a market-cap-weighted index of US mid-cap companies that exhibit both growth and value characteristics as determined by multifactor selection.

Comparing Aramark and its ETFs

Now let’s compare Aramark with the ETFs that invest in it:

  • The year-to-date price movements of Aramark, IPO, FXD, FPX, and JKG are 5.6%, -8.4%, -3.8%, 2.7%, and -0.86%, respectively.
  • The PE ratios of Aramark, IPO, FXD, FPX, and JKG are 35.9x, 36.6x, 16.1x, 28.9x, and 26.6x, respectively.
  • The PBV ratios of Aramark, IPO, FXD, FPX, and JKG are 4.2x, 2.5x, 3.7x, 3.8x, and 2.7x, respectively.

Therefore, Aramark has outperformed its ETFs based on price movement, PE, and PBV.

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