17 Jul Chipotle Mexican Grill (NYSE:CMG) vs. Aramark (NYSE:ARMK) H…
Chipotle Mexican Grill (NYSE:CMG) and Aramark (NYSE:ARMK) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
This is a summary of recent recommendations and price targets for Chipotle Mexican Grill and Aramark, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chipotle Mexican Grill||6||12||14||0||2.25|
Chipotle Mexican Grill currently has a consensus price target of $666.62, indicating a potential downside of 12.50%. Aramark has a consensus price target of $40.64, indicating a potential upside of 13.38%. Given Aramark’s stronger consensus rating and higher possible upside, analysts plainly believe Aramark is more favorable than Chipotle Mexican Grill.
Volatility & Risk
Chipotle Mexican Grill has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Aramark has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Aramark pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Chipotle Mexican Grill does not pay a dividend. Aramark pays out 22.1% of its earnings in the form of a dividend. Aramark has increased its dividend for 4 consecutive years.
This table compares Chipotle Mexican Grill and Aramark’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chipotle Mexican Grill||4.08%||19.78%||10.11%|
Institutional and Insider Ownership
95.0% of Chipotle Mexican Grill shares are held by institutional investors. Comparatively, 97.3% of Aramark shares are held by institutional investors. 2.2% of Chipotle Mexican Grill shares are held by insiders. Comparatively, 3.5% of Aramark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Chipotle Mexican Grill and Aramark’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chipotle Mexican Grill||$4.86 billion||4.34||$176.55 million||$9.06||84.09|
|Aramark||$15.79 billion||0.56||$567.88 million||$1.99||18.01|
Aramark has higher revenue and earnings than Chipotle Mexican Grill. Aramark is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.
Aramark beats Chipotle Mexican Grill on 9 of the 17 factors compared between the two stocks.
Chipotle Mexican Grill Company Profile
Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants. As of December 31, 2018, it operated 2,491 restaurants, including 2,452 Chipotle restaurants in the United States, 37 Chipotle restaurants internationally, and two non-Chipotle restaurants. The company was founded in 1993 and is headquartered in Newport Beach, California.
Aramark Company Profile
Aramark provides food, facilities management, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. It operates in three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The company offers managed services, including dining, catering, food service management, and convenience-oriented retail operations; non-clinical support services, such as patient food and nutrition, retail food, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, clinical equipment maintenance, grounds keeping, and capital project management services. It also provides on-site restaurants, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, payment, 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. Additionally, the company offers correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. It also provides design, sourcing and manufacturing, delivery, cleaning, maintenance, and marketing services for uniforms and accessories; provides managed restroom services; and rents uniforms, work clothing, outerwear, particulate-free garments, and non-garment items and related services that include mats, shop towels, and first aid supplies. The company was formerly known as ARAMARK Holdings Corporation and changed its name to Aramark in May 2014. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.
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