Reviewing Bojangles (BOJA) and Aramark (ARMK)
Bojangles (NASDAQ:BOJA) and Aramark (NYSE:ARMK) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
91.0% of Bojangles shares are owned by institutional investors. Comparatively, 99.6% of Aramark shares are owned by institutional investors. 52.9% of Bojangles shares are owned by company insiders. Comparatively, 2.9% of Aramark shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current ratings for Bojangles and Aramark, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bojangles currently has a consensus price target of $14.25, suggesting a potential downside of 11.49%. Aramark has a consensus price target of $47.30, suggesting a potential upside of 29.73%. Given Aramark’s stronger consensus rating and higher probable upside, analysts clearly believe Aramark is more favorable than Bojangles.
This table compares Bojangles and Aramark’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Bojangles and Aramark’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bojangles||$547.44 million||1.10||$72.00 million||$0.83||19.40|
|Aramark||$15.79 billion||0.57||$567.88 million||$1.99||18.32|
Aramark has higher revenue and earnings than Bojangles. Aramark is trading at a lower price-to-earnings ratio than Bojangles, indicating that it is currently the more affordable of the two stocks.
Aramark pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Bojangles 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 3 consecutive years.
Volatility and Risk
Bojangles has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Aramark has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
Aramark beats Bojangles on 10 of the 17 factors compared between the two stocks.
Bojangles Company Profile
Bojangles', Inc. develops, operates, and franchises limited service restaurants in the United States. Its restaurants offer made-from-scratch biscuit breakfast sandwiches, hand-breaded bone-in chicken, fixin's, and iced tea. As of July 1, 2018, the company operated 766 system-wide restaurants, including 325 company-operated and 441 franchised restaurants primarily located in the Southeastern United States. Bojangles', Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.
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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