Specialty Business Services
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CTAS vs ARMK
Revenue, margins, valuation, and 5-year total return — side by side.
Specialty Business Services
CTAS vs ARMK — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Specialty Business Services | Specialty Business Services |
| Market Cap | $68.20B | $11.90B |
| Revenue (TTM) | $10.79B | $18.79B |
| Net Income (TTM) | $1.90B | $317M |
| Gross Margin | 50.2% | 7.0% |
| Operating Margin | 23.0% | 4.2% |
| Forward P/E | 34.6x | 20.4x |
| Total Debt | $2.65B | $5.72B |
| Cash & Equiv. | $264M | $639M |
CTAS vs ARMK — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Cintas Corporation (CTAS) | 100 | 273.0 | +173.0% |
| Aramark (ARMK) | 100 | 242.2 | +142.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CTAS vs ARMK
Each card shows where this stock fits in a portfolio — not just who wins on paper.
CTAS carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 3 yrs, beta 0.51, yield 0.9%
- Rev growth 7.7%, EPS growth 16.1%, 3Y rev CAGR 9.6%
- 6.9% 10Y total return vs ARMK's 100.3%
ARMK is the clearest fit if your priority is value and momentum.
- Lower P/E (20.4x vs 34.6x)
- +33.7% vs CTAS's -19.3%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 7.7% revenue growth vs ARMK's 6.4% | |
| Value | Lower P/E (20.4x vs 34.6x) | |
| Quality / Margins | 17.6% margin vs ARMK's 1.7% | |
| Stability / Safety | Beta 0.51 vs ARMK's 0.71, lower leverage | |
| Dividends | 0.9% yield, 3-year raise streak, vs ARMK's 0.9% | |
| Momentum (1Y) | +33.7% vs CTAS's -19.3% | |
| Efficiency (ROA) | 18.7% ROA vs ARMK's 2.4%, ROIC 25.8% vs 7.3% |
CTAS vs ARMK — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
CTAS vs ARMK — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
CTAS leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ARMK is the larger business by revenue, generating $18.8B annually — 1.7x CTAS's $10.8B. CTAS is the more profitable business, keeping 17.6% of every revenue dollar as net income compared to ARMK's 1.7%. On growth, CTAS holds the edge at +9.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $10.8B | $18.8B |
| EBITDAEarnings before interest/tax | $2.9B | $1.3B |
| Net IncomeAfter-tax profit | $1.9B | $317M |
| Free Cash FlowCash after capex | $1.8B | $257M |
| Gross MarginGross profit ÷ Revenue | +50.2% | +7.0% |
| Operating MarginEBIT ÷ Revenue | +23.0% | +4.2% |
| Net MarginNet income ÷ Revenue | +17.6% | +1.7% |
| FCF MarginFCF ÷ Revenue | +16.5% | +1.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.3% | +6.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +11.0% | -7.7% |
Valuation Metrics
ARMK leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 37.1x trailing earnings, ARMK trades at a 4% valuation discount to CTAS's 38.5x P/E. On an enterprise value basis, ARMK's 13.4x EV/EBITDA is more attractive than CTAS's 24.7x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $68.2B | $11.9B |
| Enterprise ValueMkt cap + debt − cash | $70.6B | $17.0B |
| Trailing P/EPrice ÷ TTM EPS | 38.47x | 37.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 34.59x | 20.35x |
| PEG RatioP/E ÷ EPS growth rate | 2.30x | — |
| EV / EBITDAEnterprise value multiple | 24.73x | 13.39x |
| Price / SalesMarket cap ÷ Revenue | 6.60x | 0.64x |
| Price / BookPrice ÷ Book value/share | 14.82x | 3.83x |
| Price / FCFMarket cap ÷ FCF | 38.82x | 26.17x |
Profitability & Efficiency
CTAS leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
CTAS delivers a 42.6% return on equity — every $100 of shareholder capital generates $43 in annual profit, vs $10 for ARMK. CTAS carries lower financial leverage with a 0.57x debt-to-equity ratio, signaling a more conservative balance sheet compared to ARMK's 1.81x. On the Piotroski fundamental quality scale (0–9), CTAS scores 9/9 vs ARMK's 7/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +42.6% | +9.8% |
| ROA (TTM)Return on assets | +18.7% | +2.4% |
| ROICReturn on invested capital | +25.8% | +7.3% |
| ROCEReturn on capital employed | +29.8% | +8.7% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 7 |
| Debt / EquityFinancial leverage | 0.57x | 1.81x |
| Net DebtTotal debt minus cash | $2.4B | $5.1B |
| Cash & Equiv.Liquid assets | $264M | $639M |
| Total DebtShort + long-term debt | $2.7B | $5.7B |
| Interest CoverageEBIT ÷ Interest expense | 24.61x | 2.20x |
Total Returns (Dividends Reinvested)
ARMK leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CTAS five years ago would be worth $20,172 today (with dividends reinvested), compared to $17,200 for ARMK. Over the past 12 months, ARMK leads with a +33.7% total return vs CTAS's -19.3%. The 3-year compound annual growth rate (CAGR) favors ARMK at 22.8% vs CTAS's 14.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -8.2% | +24.1% |
| 1-Year ReturnPast 12 months | -19.3% | +33.7% |
| 3-Year ReturnCumulative with dividends | +49.1% | +85.0% |
| 5-Year ReturnCumulative with dividends | +101.7% | +72.0% |
| 10-Year ReturnCumulative with dividends | +694.8% | +100.3% |
| CAGR (3Y)Annualised 3-year return | +14.2% | +22.8% |
Risk & Volatility
Evenly matched — CTAS and ARMK each lead in 1 of 2 comparable metrics.
Risk & Volatility
CTAS is the less volatile stock with a 0.51 beta — it tends to amplify market swings less than ARMK's 0.71 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ARMK currently trades 96.5% from its 52-week high vs CTAS's 73.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.51x | 0.71x |
| 52-Week HighHighest price in past year | $229.24 | $46.88 |
| 52-Week LowLowest price in past year | $165.46 | $33.50 |
| % of 52W HighCurrent price vs 52-week peak | +73.8% | +96.5% |
| RSI (14)Momentum oscillator 0–100 | 31.5 | 56.2 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 2.1M |
Analyst Outlook
Evenly matched — CTAS and ARMK each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates CTAS as "Hold" and ARMK as "Buy". Consensus price targets imply 32.0% upside for CTAS (target: $223) vs 4.3% for ARMK (target: $47). For income investors, ARMK offers the higher dividend yield at 0.92% vs CTAS's 0.88%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $223.40 | $47.20 |
| # AnalystsCovering analysts | 30 | 24 |
| Dividend YieldAnnual dividend ÷ price | +0.9% | +0.9% |
| Dividend StreakConsecutive years of raises | 3 | 1 |
| Dividend / ShareAnnual DPS | $1.49 | $0.41 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.4% | +1.2% |
CTAS leads in 2 of 6 categories (Income & Cash Flow, Profitability & Efficiency). ARMK leads in 2 (Valuation Metrics, Total Returns). 2 tied.
CTAS vs ARMK: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CTAS or ARMK a better buy right now?
For growth investors, Cintas Corporation (CTAS) is the stronger pick with 7.
7% revenue growth year-over-year, versus 6. 4% for Aramark (ARMK). Aramark (ARMK) offers the better valuation at 37. 1x trailing P/E (20. 4x forward), making it the more compelling value choice. Analysts rate Aramark (ARMK) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CTAS or ARMK?
On trailing P/E, Aramark (ARMK) is the cheapest at 37.
1x versus Cintas Corporation at 38. 5x. On forward P/E, Aramark is actually cheaper at 20. 4x.
03Which is the better long-term investment — CTAS or ARMK?
Over the past 5 years, Cintas Corporation (CTAS) delivered a total return of +101.
7%, compared to +72. 0% for Aramark (ARMK). Over 10 years, the gap is even starker: CTAS returned +694. 8% versus ARMK's +100. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CTAS or ARMK?
By beta (market sensitivity over 5 years), Cintas Corporation (CTAS) is the lower-risk stock at 0.
51β versus Aramark's 0. 71β — meaning ARMK is approximately 39% more volatile than CTAS relative to the S&P 500. On balance sheet safety, Cintas Corporation (CTAS) carries a lower debt/equity ratio of 57% versus 181% for Aramark — giving it more financial flexibility in a downturn.
05Which is growing faster — CTAS or ARMK?
By revenue growth (latest reported year), Cintas Corporation (CTAS) is pulling ahead at 7.
7% versus 6. 4% for Aramark (ARMK). On earnings-per-share growth, the picture is similar: Aramark grew EPS 23. 2% year-over-year, compared to 16. 1% for Cintas Corporation. Over a 3-year CAGR, ARMK leads at 10. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — CTAS or ARMK?
Cintas Corporation (CTAS) is the more profitable company, earning 17.
5% net margin versus 1. 8% for Aramark — meaning it keeps 17. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CTAS leads at 22. 8% versus 4. 3% for ARMK. At the gross margin level — before operating expenses — CTAS leads at 50. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is CTAS or ARMK more undervalued right now?
On forward earnings alone, Aramark (ARMK) trades at 20.
4x forward P/E versus 34. 6x for Cintas Corporation — 14. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CTAS: 32. 0% to $223. 40.
08Which pays a better dividend — CTAS or ARMK?
All stocks in this comparison pay dividends.
Aramark (ARMK) offers the highest yield at 0. 9%, versus 0. 9% for Cintas Corporation (CTAS).
09Is CTAS or ARMK better for a retirement portfolio?
For long-horizon retirement investors, Cintas Corporation (CTAS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
51), 0. 9% yield, +694. 8% 10Y return). Both have compounded well over 10 years (CTAS: +694. 8%, ARMK: +100. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between CTAS and ARMK?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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