ARMK vs. LECO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARMK and LECO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARMK’s market capitalization stands at 11.21 billion USD, while LECO’s is 12.07 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.36 for ARMK and 1.21 for LECO, both stocks show similar sensitivity to overall market movements.
| Symbol | ARMK | LECO |
|---|---|---|
| Company Name | Aramark | Lincoln Electric Holdings, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Specialty Business Services | Manufacturing - Tools & Accessories |
| CEO | John J. Zillmer | Steven B. Hedlund |
| Price | 42.79 USD | 216.28 USD |
| Market Cap | 11.21 billion USD | 12.07 billion USD |
| Beta | 1.36 | 1.21 |
| Exchange | NYSE | NASDAQ |
| IPO Date | December 12, 2013 | April 7, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARMK and LECO 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.
LECO
34.68%
Manufacturing - Tools & Accessories Industry
- Max
- 34.68%
- Q3
- 20.63%
- Median
- 10.07%
- Q1
- 7.35%
- Min
- 1.56%
In the upper quartile for the Manufacturing - Tools & Accessories industry, LECO’s Return on Equity of 34.68% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
LECO
18.96%
Manufacturing - Tools & Accessories Industry
- Max
- 18.96%
- Q3
- 14.59%
- Median
- 7.53%
- Q1
- 6.50%
- Min
- 2.74%
In the upper quartile for the Manufacturing - Tools & Accessories industry, LECO’s Return on Invested Capital of 18.96% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
LECO
11.44%
Manufacturing - Tools & Accessories Industry
- Max
- 21.42%
- Q3
- 12.34%
- Median
- 8.01%
- Q1
- 4.68%
- Min
- 1.24%
LECO’s Net Profit Margin of 11.44% is aligned with the median group of its peers in the Manufacturing - Tools & Accessories 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.
LECO
16.61%
Manufacturing - Tools & Accessories Industry
- Max
- 27.46%
- Q3
- 18.11%
- Median
- 11.96%
- Q1
- 8.53%
- Min
- 6.01%
LECO’s Operating Profit Margin of 16.61% is around the midpoint for the Manufacturing - Tools & Accessories industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARMK | LECO |
|---|---|---|
| Return on Equity (TTM) | 11.52% | 34.68% |
| Return on Assets (TTM) | 2.58% | 12.72% |
| Return on Invested Capital (TTM) | 5.32% | 18.96% |
| Net Profit Margin (TTM) | 1.97% | 11.44% |
| Operating Profit Margin (TTM) | 4.38% | 16.61% |
| Gross Profit Margin (TTM) | 7.86% | 36.45% |
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.
LECO
1.78
Manufacturing - Tools & Accessories Industry
- Max
- 4.14
- Q3
- 3.17
- Median
- 2.45
- Q1
- 1.81
- Min
- 1.10
LECO’s Current Ratio of 1.78 falls into the lower quartile for the Manufacturing - Tools & Accessories industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
LECO
0.94
Manufacturing - Tools & Accessories Industry
- Max
- 0.94
- Q3
- 0.78
- Median
- 0.72
- Q1
- 0.31
- Min
- 0.05
LECO’s leverage is in the upper quartile of the Manufacturing - Tools & Accessories industry, with a Debt-to-Equity Ratio of 0.94. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
LECO
14.51
Manufacturing - Tools & Accessories Industry
- Max
- 14.51
- Q3
- 10.02
- Median
- 6.60
- Q1
- 5.24
- Min
- 1.53
LECO’s Interest Coverage Ratio of 14.51 is in the upper quartile for the Manufacturing - Tools & Accessories industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARMK | LECO |
|---|---|---|
| Current Ratio (TTM) | 1.21 | 1.78 |
| Quick Ratio (TTM) | 1.08 | 1.19 |
| Debt-to-Equity Ratio (TTM) | 2.27 | 0.94 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.35 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.74 | 1.17 |
| Interest Coverage Ratio (TTM) | 2.33 | 14.51 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARMK and LECO. 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.
LECO
1.37%
Manufacturing - Tools & Accessories Industry
- Max
- 4.85%
- Q3
- 2.87%
- Median
- 2.00%
- Q1
- 1.05%
- Min
- 0.00%
LECO’s Dividend Yield of 1.37% is consistent with its peers in the Manufacturing - Tools & Accessories industry, providing a dividend return that is standard for its sector.
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.
LECO
35.53%
Manufacturing - Tools & Accessories Industry
- Max
- 138.27%
- Q3
- 47.32%
- Median
- 36.66%
- Q1
- 23.90%
- Min
- 0.00%
LECO’s Dividend Payout Ratio of 35.53% is within the typical range for the Manufacturing - Tools & Accessories industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARMK | LECO |
|---|---|---|
| Dividend Yield (TTM) | 0.96% | 1.37% |
| Dividend Payout Ratio (TTM) | 30.38% | 35.53% |
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.
LECO
26.41
Manufacturing - Tools & Accessories Industry
- Max
- 48.52
- Q3
- 33.58
- Median
- 21.58
- Q1
- 16.21
- Min
- 15.65
LECO’s P/E Ratio of 26.41 is within the middle range for the Manufacturing - Tools & Accessories industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
LECO
4.33
Manufacturing - Tools & Accessories Industry
- Max
- 5.86
- Q3
- 4.35
- Median
- 3.53
- Q1
- 1.63
- Min
- 0.87
LECO’s Forward PEG Ratio of 4.33 is within the middle range of its peers in the Manufacturing - Tools & Accessories industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
LECO
3.00
Manufacturing - Tools & Accessories Industry
- Max
- 3.41
- Q3
- 3.03
- Median
- 1.33
- Q1
- 0.93
- Min
- 0.69
LECO’s P/S Ratio of 3.00 aligns with the market consensus for the Manufacturing - Tools & Accessories 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.
LECO
9.09
Manufacturing - Tools & Accessories Industry
- Max
- 4.75
- Q3
- 4.14
- Median
- 2.35
- Q1
- 1.37
- Min
- 1.16
At 9.09, LECO’s P/B Ratio is at an extreme premium to the Manufacturing - Tools & Accessories industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ARMK | LECO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.56 | 26.41 |
| Forward PEG Ratio (TTM) | 2.42 | 4.33 |
| Price-to-Sales Ratio (P/S, TTM) | 0.64 | 3.00 |
| Price-to-Book Ratio (P/B, TTM) | 3.75 | 9.09 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 30.22 | 22.61 |
| EV-to-EBITDA (TTM) | 13.73 | 17.50 |
| EV-to-Sales (TTM) | 0.97 | 3.21 |