Analyzing Mitie Group (OTCMKTS:MITFY) and Aramark (NYSE:ARMK)

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

Valuation & Earnings

This table compares Mitie Group and Aramark”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitie Group	$7.53 billion	0.38	$121.04 million	N/A	N/A
Aramark	$18.51 billion	0.77	$326.39 million	$1.34	40.51

Aramark has higher revenue and earnings than Mitie Group.

Dividends

Mitie Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Aramark pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Aramark pays out 35.8% of its earnings in the form of a dividend. Aramark has raised its dividend for 1 consecutive years.

Risk and Volatility

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

Profitability

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

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

Insider & Institutional Ownership

0.2% of Mitie Group shares are owned by institutional investors. 0.8% of Mitie Group shares are owned by insiders. Comparatively, 2.8% of Aramark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

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

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

Aramark has a consensus target price of $55.33, indicating a potential upside of 1.94%. Given Aramark’s higher probable upside, analysts plainly believe Aramark is more favorable than Mitie Group.

Summary

Aramark beats Mitie Group on 11 of the 16 factors compared between the two stocks.

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.

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.