ARMK vs. FA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARMK and FA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARMK’s market capitalization of 11.21 billion USD is substantially larger than FA’s 2.98 billion USD, indicating a significant difference in their market valuations.
With betas of 1.36 for ARMK and 1.30 for FA, both stocks show similar sensitivity to overall market movements.
| Symbol | ARMK | FA |
|---|---|---|
| Company Name | Aramark | First Advantage Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Specialty Business Services | Specialty Business Services |
| CEO | John J. Zillmer | Scott Staples |
| Price | 42.79 USD | 17.16 USD |
| Market Cap | 11.21 billion USD | 2.98 billion USD |
| Beta | 1.36 | 1.30 |
| Exchange | NYSE | NASDAQ |
| IPO Date | December 12, 2013 | June 23, 2021 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARMK and FA 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.
FA
-13.44%
Specialty Business Services Industry
- Max
- 30.24%
- Q3
- 17.20%
- Median
- 7.32%
- Q1
- 4.37%
- Min
- -13.44%
FA has a negative Return on Equity of -13.44%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
FA
-1.47%
Specialty Business Services Industry
- Max
- 22.69%
- Q3
- 10.02%
- Median
- 5.30%
- Q1
- 1.55%
- Min
- -1.58%
FA has a negative Return on Invested Capital of -1.47%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
FA
-14.21%
Specialty Business Services Industry
- Max
- 17.53%
- Q3
- 11.60%
- Median
- 5.65%
- Q1
- 1.65%
- Min
- -5.21%
FA has a negative Net Profit Margin of -14.21%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
FA
-5.17%
Specialty Business Services Industry
- Max
- 29.40%
- Q3
- 16.52%
- Median
- 5.78%
- Q1
- 1.54%
- Min
- -5.17%
FA has a negative Operating Profit Margin of -5.17%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ARMK | FA |
|---|---|---|
| Return on Equity (TTM) | 11.52% | -13.44% |
| Return on Assets (TTM) | 2.58% | -3.84% |
| Return on Invested Capital (TTM) | 5.32% | -1.47% |
| Net Profit Margin (TTM) | 1.97% | -14.21% |
| Operating Profit Margin (TTM) | 4.38% | -5.17% |
| Gross Profit Margin (TTM) | 7.86% | 46.98% |
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.
FA
1.96
Specialty Business Services Industry
- Max
- 2.21
- Q3
- 1.84
- Median
- 1.52
- Q1
- 0.94
- Min
- 0.26
FA’s Current Ratio of 1.96 is in the upper quartile for the Specialty Business Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.
FA
0.03
Specialty Business Services Industry
- Max
- 1.02
- Q3
- 0.93
- Median
- 0.62
- Q1
- 0.22
- Min
- 0.03
Falling into the lower quartile for the Specialty Business Services industry, FA’s Debt-to-Equity Ratio of 0.03 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.
FA
-0.57
Specialty Business Services Industry
- Max
- 15.61
- Q3
- 6.91
- Median
- 3.29
- Q1
- 0.04
- Min
- -8.58
FA has a negative Interest Coverage Ratio of -0.57. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | ARMK | FA |
|---|---|---|
| Current Ratio (TTM) | 1.21 | 1.96 |
| Quick Ratio (TTM) | 1.08 | 1.96 |
| Debt-to-Equity Ratio (TTM) | 2.27 | 0.03 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.74 | -1.12 |
| Interest Coverage Ratio (TTM) | 2.33 | -0.57 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARMK and FA. 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.
FA
0.00%
Specialty Business Services Industry
- Max
- 4.40%
- Q3
- 1.37%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
FA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
FA
-0.17%
Specialty Business Services Industry
- Max
- 79.38%
- Q3
- 51.62%
- Median
- 23.75%
- Q1
- 1.08%
- Min
- 0.00%
FA has a negative Dividend Payout Ratio of -0.17%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
Dividend at a Glance
| Symbol | ARMK | FA |
|---|---|---|
| Dividend Yield (TTM) | 0.96% | 0.00% |
| Dividend Payout Ratio (TTM) | 30.38% | -0.17% |
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.
FA
-19.96
Specialty Business Services Industry
- Max
- 52.23
- Q3
- 42.83
- Median
- 32.04
- Q1
- 16.00
- Min
- 2.24
FA has a negative P/E Ratio of -19.96. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
FA
-0.96
Specialty Business Services Industry
- Max
- 4.93
- Q3
- 3.34
- Median
- 2.19
- Q1
- 0.14
- Min
- 0.06
FA has a negative Forward PEG Ratio of -0.96. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
FA
2.85
Specialty Business Services Industry
- Max
- 6.26
- Q3
- 3.60
- Median
- 1.90
- Q1
- 0.73
- Min
- 0.34
FA’s P/S Ratio of 2.85 aligns with the market consensus for the Specialty Business Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
FA
2.32
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.
Valuation at a Glance
| Symbol | ARMK | FA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.56 | -19.96 |
| Forward PEG Ratio (TTM) | 2.42 | -0.96 |
| Price-to-Sales Ratio (P/S, TTM) | 0.64 | 2.85 |
| Price-to-Book Ratio (P/B, TTM) | 3.75 | 2.32 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 30.22 | 869.38 |
| EV-to-EBITDA (TTM) | 13.73 | 23.04 |
| EV-to-Sales (TTM) | 0.97 | 2.72 |