Analyzing Celsius (CELH) and Aramark (ARMK)

Celsius (NASDAQ: CELH) and Aramark (NYSE:ARMK) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

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6.5% of Celsius shares are held by institutional investors. Comparatively, 94.7% of Aramark shares are held by institutional investors. 49.0% of Celsius shares are held by company insiders. Comparatively, 2.9% of Aramark shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Celsius has a beta of -0.56, suggesting that its stock price is 156% less volatile than the S&P 500. Comparatively, Aramark has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Celsius -22.78% -14.93% -10.23%
Aramark 3.65% 18.68% 4.07%

Dividends

Aramark pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Celsius does not pay a dividend. Aramark pays out 19.5% of its earnings in the form of a dividend. Celsius has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Celsius and Aramark’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celsius $36.16 million 6.10 -$8.24 million ($0.20) -24.00
Aramark $14.60 billion 0.66 $373.92 million $2.15 18.17

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

Analyst Recommendations

This is a summary of current recommendations for Celsius and Aramark, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celsius 0 0 2 0 3.00
Aramark 0 2 5 0 2.71

Celsius currently has a consensus price target of $8.00, indicating a potential upside of 66.67%. Aramark has a consensus price target of $47.43, indicating a potential upside of 21.39%. Given Celsius’ stronger consensus rating and higher possible upside, analysts plainly believe Celsius is more favorable than Aramark.

Summary

Aramark beats Celsius on 10 of the 16 factors compared between the two stocks.

About Celsius

Celsius Holdings, Inc. is engaged in the development, marketing, sale and distribution of functional calorie-burning fitness beverages under the Celsius brand name. The Company’s product range includes Sparkling Grape Rush, Sparkling Watermelon, Sparkling Orange, Sparkling Wild Berry, Sparkling Cola, Raspberry Acai Green Tea, Peach Mango Green Tea, Flo Fusion Orange and Flo Fusion Berry. The Company’s products are sweetened with sucralose, which is suitable for consumers whose sugar intake is restricted. The Company’s Celsius brand uses ingredients and supplements, such as green tea (EGCG), ginger, calcium, chromium, B vitamins and vitamin C. The Company outsources the manufacturing process to third-party co-packers. It provides co-packers with flavors, ingredient blends, cans and other raw materials for its beverages purchased by it from various suppliers. It sells Celsius brand across retail segments, which include supermarkets and convenience stores.

About Aramark

Aramark is a global provider of food, facilities and uniform services to education, healthcare, business and industry, and sports, leisure and corrections clients. The Company operates through three segments: Food and Support Services North America (FSS North America), Food and Support Services International (FSS International), and Uniform and Career Apparel (Uniform). FSS North America and FSS International segments include food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities. The Uniform segment includes rental, sale, cleaning, maintenance and delivery of personalized uniforms and other textile items to clients in a range of industries in the United States, Puerto Rico, Japan and Canada, including manufacturing, transportation, construction, restaurants and hotels, healthcare and pharmaceutical industries.

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