Contrasting Carrols Restaurant Group (TAST) & Aramark (ARMK)
Carrols Restaurant Group (NASDAQ:TAST) and Aramark (NYSE:ARMK) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Volatility & Risk
Carrols Restaurant Group has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Aramark has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.
This table compares Carrols Restaurant Group and Aramark’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Carrols Restaurant Group||1.00%||8.53%||2.48%|
Institutional & Insider Ownership
86.4% of Carrols Restaurant Group shares are owned by institutional investors. Comparatively, 98.0% of Aramark shares are owned by institutional investors. 4.6% of Carrols Restaurant Group shares are owned by company insiders. Comparatively, 3.3% of Aramark shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Aramark pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. Carrols Restaurant Group does not pay a dividend. Aramark pays out 23.7% of its earnings in the form of a dividend. Aramark has raised its dividend for 3 consecutive years.
Valuation & Earnings
This table compares Carrols Restaurant Group and Aramark’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Carrols Restaurant Group||$1.09 billion||0.46||$7.15 million||$0.20||69.00|
|Aramark||$14.60 billion||0.73||$373.92 million||$1.77||24.33|
Aramark has higher revenue and earnings than Carrols Restaurant Group. Aramark is trading at a lower price-to-earnings ratio than Carrols Restaurant Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Carrols Restaurant Group and Aramark, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Carrols Restaurant Group||0||0||5||0||3.00|
Carrols Restaurant Group presently has a consensus price target of $17.83, indicating a potential upside of 29.23%. Aramark has a consensus price target of $47.88, indicating a potential upside of 11.16%. Given Carrols Restaurant Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Carrols Restaurant Group is more favorable than Aramark.
Aramark beats Carrols Restaurant Group on 11 of the 16 factors compared between the two stocks.
Carrols Restaurant Group Company Profile
Carrols Restaurant Group, Inc., through its subsidiaries, operates franchisee restaurants of Burger King. As of December 31, 2017, it owned and operated 807 Burger King restaurants located in 17 states of the United States. The company was founded in 1960 and is headquartered in Syracuse, New York.
Aramark Company Profile
Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. The company operates through three segments: Food and Support Services North America, Food and Support Services International, Uniform and Career Apparel. It offers managed services include dining, catering, food service management, convenience-oriented retail operations, grounds and facilities maintenance, custodial, energy and construction management, and capital project management. The company also provides non-clinical support services, such as patient food and nutrition, retail food, and procurement services; and facilities services comprising clinical equipment maintenance, environmental, plant operations, energy and supply chain management, and purchasing. In addition, it offers on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising housekeeping, plant operations and maintenance, energy management, grounds keeping, landscaping, transportation, capital program management and commissioning, and other facility consulting services. Further, the company provides facility and business support services banquet and catering, retail and merchandise sales, recreational and lodging, and facility management services for sports, entertainment, and recreational facilities. Additionally, it offers correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. It also rents, sells, cleans, maintains, and delivers uniform and career apparel, and other textile items; and provides other garments and work clothes, as well as ancillary items. 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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