ARMK vs. CP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARMK and CP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CP’s market capitalization of 75.39 billion USD is significantly greater than ARMK’s 11.21 billion USD, highlighting its more substantial market valuation.
With betas of 1.36 for ARMK and 1.07 for CP, both stocks show similar sensitivity to overall market movements.
| Symbol | ARMK | CP |
|---|---|---|
| Company Name | Aramark | Canadian Pacific Railway Limited |
| Country | US | CA |
| Sector | Industrials | Industrials |
| Industry | Specialty Business Services | Railroads |
| CEO | John J. Zillmer | Keith E. Creel |
| Price | 42.79 USD | 81.03 USD |
| Market Cap | 11.21 billion USD | 75.39 billion USD |
| Beta | 1.36 | 1.07 |
| Exchange | NYSE | NYSE |
| IPO Date | December 12, 2013 | December 30, 1983 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARMK and CP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ARMK
11.52%
Specialty Business Services Industry
- Max
- 30.24%
- Q3
- 17.20%
- Median
- 7.32%
- Q1
- 4.37%
- Min
- -13.44%
ARMK’s Return on Equity of 11.52% is on par with the norm for the Specialty Business Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
CP
8.37%
Railroads Industry
- Max
- 40.80%
- Q3
- 24.36%
- Median
- 18.32%
- Q1
- 11.84%
- Min
- 8.37%
CP’s Return on Equity of 8.37% is in the lower quartile for the Railroads industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
ARMK
5.32%
Specialty Business Services Industry
- Max
- 22.69%
- Q3
- 10.02%
- Median
- 5.30%
- Q1
- 1.55%
- Min
- -1.58%
ARMK’s Return on Invested Capital of 5.32% is in line with the norm for the Specialty Business Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
CP
4.91%
Railroads Industry
- Max
- 11.47%
- Q3
- 9.66%
- Median
- 9.08%
- Q1
- 7.36%
- Min
- 4.32%
CP’s Return on Invested Capital of 4.91% is in the lower quartile for the Railroads industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
ARMK
1.97%
Specialty Business Services Industry
- Max
- 17.53%
- Q3
- 11.60%
- Median
- 5.65%
- Q1
- 1.65%
- Min
- -5.21%
ARMK’s Net Profit Margin of 1.97% is aligned with the median group of its peers in the Specialty Business Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
CP
26.00%
Railroads Industry
- Max
- 27.77%
- Q3
- 26.50%
- Median
- 24.33%
- Q1
- 9.34%
- Min
- 4.79%
CP’s Net Profit Margin of 26.00% is aligned with the median group of its peers in the Railroads industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ARMK
4.38%
Specialty Business Services Industry
- Max
- 29.40%
- Q3
- 16.52%
- Median
- 5.78%
- Q1
- 1.54%
- Min
- -5.17%
ARMK’s Operating Profit Margin of 4.38% is around the midpoint for the Specialty Business Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
CP
36.27%
Railroads Industry
- Max
- 41.08%
- Q3
- 37.86%
- Median
- 35.40%
- Q1
- 15.99%
- Min
- 10.85%
CP’s Operating Profit Margin of 36.27% is around the midpoint for the Railroads industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARMK | CP |
|---|---|---|
| Return on Equity (TTM) | 11.52% | 8.37% |
| Return on Assets (TTM) | 2.58% | 4.38% |
| Return on Invested Capital (TTM) | 5.32% | 4.91% |
| Net Profit Margin (TTM) | 1.97% | 26.00% |
| Operating Profit Margin (TTM) | 4.38% | 36.27% |
| Gross Profit Margin (TTM) | 7.86% | 41.02% |
Financial Strength
Current Ratio
ARMK
1.21
Specialty Business Services Industry
- Max
- 2.21
- Q3
- 1.84
- Median
- 1.52
- Q1
- 0.94
- Min
- 0.26
ARMK’s Current Ratio of 1.21 aligns with the median group of the Specialty Business Services industry, indicating that its short-term liquidity is in line with its sector peers.
CP
0.81
Railroads Industry
- Max
- 1.97
- Q3
- 1.41
- Median
- 0.85
- Q1
- 0.77
- Min
- 0.62
CP’s Current Ratio of 0.81 aligns with the median group of the Railroads industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ARMK
2.27
Specialty Business Services Industry
- Max
- 1.02
- Q3
- 0.93
- Median
- 0.62
- Q1
- 0.22
- Min
- 0.03
With a Debt-to-Equity Ratio of 2.27, ARMK operates with exceptionally high leverage compared to the Specialty Business Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
CP
0.47
Railroads Industry
- Max
- 2.11
- Q3
- 1.44
- Median
- 1.19
- Q1
- 0.72
- Min
- 0.39
Falling into the lower quartile for the Railroads industry, CP’s Debt-to-Equity Ratio of 0.47 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ARMK
2.33
Specialty Business Services Industry
- Max
- 15.61
- Q3
- 6.91
- Median
- 3.29
- Q1
- 0.04
- Min
- -8.58
ARMK’s Interest Coverage Ratio of 2.33 is positioned comfortably within the norm for the Specialty Business Services industry, indicating a standard and healthy capacity to cover its interest payments.
CP
6.63
Railroads Industry
- Max
- 8.45
- Q3
- 7.16
- Median
- 6.40
- Q1
- 5.53
- Min
- 4.30
CP’s Interest Coverage Ratio of 6.63 is positioned comfortably within the norm for the Railroads industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ARMK | CP |
|---|---|---|
| Current Ratio (TTM) | 1.21 | 0.81 |
| Quick Ratio (TTM) | 1.08 | 0.70 |
| Debt-to-Equity Ratio (TTM) | 2.27 | 0.47 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.26 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.74 | 2.86 |
| Interest Coverage Ratio (TTM) | 2.33 | 6.63 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARMK and CP. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARMK
0.96%
Specialty Business Services Industry
- Max
- 4.40%
- Q3
- 1.37%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
ARMK’s Dividend Yield of 0.96% is consistent with its peers in the Specialty Business Services industry, providing a dividend return that is standard for its sector.
CP
0.73%
Railroads Industry
- Max
- 4.30%
- Q3
- 2.64%
- Median
- 2.21%
- Q1
- 1.33%
- Min
- 0.43%
CP’s Dividend Yield of 0.73% is in the lower quartile for the Railroads industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
ARMK
30.38%
Specialty Business Services Industry
- Max
- 79.38%
- Q3
- 51.62%
- Median
- 23.75%
- Q1
- 1.08%
- Min
- 0.00%
ARMK’s Dividend Payout Ratio of 30.38% is within the typical range for the Specialty Business Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
CP
18.40%
Railroads Industry
- Max
- 69.30%
- Q3
- 47.83%
- Median
- 32.93%
- Q1
- 18.85%
- Min
- 13.29%
CP’s Dividend Payout Ratio of 18.40% is in the lower quartile for the Railroads industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | ARMK | CP |
|---|---|---|
| Dividend Yield (TTM) | 0.96% | 0.73% |
| Dividend Payout Ratio (TTM) | 30.38% | 18.40% |
Valuation
Price-to-Earnings Ratio
ARMK
32.56
Specialty Business Services Industry
- Max
- 52.23
- Q3
- 42.83
- Median
- 32.04
- Q1
- 16.00
- Min
- 2.24
ARMK’s P/E Ratio of 32.56 is within the middle range for the Specialty Business Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
CP
26.63
Railroads Industry
- Max
- 26.01
- Q3
- 22.00
- Median
- 19.48
- Q1
- 17.09
- Min
- 16.09
At 26.63, CP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Railroads industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ARMK
2.42
Specialty Business Services Industry
- Max
- 4.93
- Q3
- 3.34
- Median
- 2.19
- Q1
- 0.14
- Min
- 0.06
ARMK’s Forward PEG Ratio of 2.42 is within the middle range of its peers in the Specialty Business Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
CP
1.90
Railroads Industry
- Max
- 1.85
- Q3
- 1.84
- Median
- 1.79
- Q1
- 1.59
- Min
- 1.52
The Forward PEG Ratio is often not a primary valuation metric in the Railroads industry.
Price-to-Sales Ratio
ARMK
0.64
Specialty Business Services Industry
- Max
- 6.26
- Q3
- 3.60
- Median
- 1.90
- Q1
- 0.73
- Min
- 0.34
In the lower quartile for the Specialty Business Services industry, ARMK’s P/S Ratio of 0.64 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
CP
6.90
Railroads Industry
- Max
- 6.74
- Q3
- 5.30
- Median
- 4.55
- Q1
- 2.73
- Min
- 0.42
With a P/S Ratio of 6.90, CP trades at a valuation that eclipses even the highest in the Railroads industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
ARMK
3.75
Specialty Business Services Industry
- Max
- 3.69
- Q3
- 3.69
- Median
- 2.13
- Q1
- 1.55
- Min
- 0.59
The P/B Ratio is often not a primary valuation metric for the Specialty Business Services industry.
CP
2.13
Railroads Industry
- Max
- 5.11
- Q3
- 4.36
- Median
- 3.70
- Q1
- 1.98
- Min
- 1.00
CP’s P/B Ratio of 2.13 is within the conventional range for the Railroads industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ARMK | CP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.56 | 26.63 |
| Forward PEG Ratio (TTM) | 2.42 | 1.90 |
| Price-to-Sales Ratio (P/S, TTM) | 0.64 | 6.90 |
| Price-to-Book Ratio (P/B, TTM) | 3.75 | 2.13 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 30.22 | 43.44 |
| EV-to-EBITDA (TTM) | 13.73 | 16.19 |
| EV-to-Sales (TTM) | 0.97 | 8.38 |