Seek Returns logo

ARMK vs. MMS: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ARMK and MMS, 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 MMS’s 4.06 billion USD, indicating a significant difference in their market valuations.

ARMK’s beta of 1.36 points to significantly higher volatility compared to MMS (beta: 0.62), suggesting ARMK has greater potential for both gains and losses relative to market movements.

SymbolARMKMMS
Company NameAramarkMaximus, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustrySpecialty Business ServicesSpecialty Business Services
CEOJohn J. ZillmerBruce L. Caswell
Price42.79 USD72.06 USD
Market Cap11.21 billion USD4.06 billion USD
Beta1.360.62
ExchangeNYSENYSE
IPO DateDecember 12, 2013June 13, 1997
ADRNoNo

Historical Performance

This chart compares the performance of ARMK and MMS 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.

ARMK vs. MMS: Growth of a $10,000 investment over the past one year.

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.

MMS

17.20%

Specialty Business Services Industry

Max
30.24%
Q3
17.20%
Median
7.32%
Q1
4.37%
Min
-13.44%

MMS’s Return on Equity of 17.20% is on par with the norm for the Specialty Business Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARMK vs. MMS: A comparison of their ROE against the Specialty Business Services industry benchmark.

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.

MMS

10.02%

Specialty Business Services Industry

Max
22.69%
Q3
10.02%
Median
5.30%
Q1
1.55%
Min
-1.58%

MMS’s Return on Invested Capital of 10.02% 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.

ARMK vs. MMS: A comparison of their ROIC against the Specialty Business Services industry benchmark.

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.

MMS

5.56%

Specialty Business Services Industry

Max
17.53%
Q3
11.60%
Median
5.65%
Q1
1.65%
Min
-5.21%

MMS’s Net Profit Margin of 5.56% 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.

ARMK vs. MMS: A comparison of their Net Profit Margin against the Specialty Business Services industry benchmark.

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.

MMS

9.14%

Specialty Business Services Industry

Max
29.40%
Q3
16.52%
Median
5.78%
Q1
1.54%
Min
-5.17%

MMS’s Operating Profit Margin of 9.14% is around the midpoint for the Specialty Business Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARMK vs. MMS: A comparison of their Operating Margin against the Specialty Business Services industry benchmark.

Profitability at a Glance

SymbolARMKMMS
Return on Equity (TTM)11.52%17.20%
Return on Assets (TTM)2.58%7.14%
Return on Invested Capital (TTM)5.32%10.02%
Net Profit Margin (TTM)1.97%5.56%
Operating Profit Margin (TTM)4.38%9.14%
Gross Profit Margin (TTM)7.86%23.62%

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.

MMS

1.84

Specialty Business Services Industry

Max
2.21
Q3
1.84
Median
1.52
Q1
0.94
Min
0.26

MMS’s Current Ratio of 1.84 aligns with the median group of the Specialty Business Services industry, indicating that its short-term liquidity is in line with its sector peers.

ARMK vs. MMS: A comparison of their Current Ratio against the Specialty Business Services industry benchmark.

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.

MMS

0.97

Specialty Business Services Industry

Max
1.02
Q3
0.93
Median
0.62
Q1
0.22
Min
0.03

MMS’s leverage is in the upper quartile of the Specialty Business Services industry, with a Debt-to-Equity Ratio of 0.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ARMK vs. MMS: A comparison of their D/E Ratio against the Specialty Business Services industry benchmark.

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.

MMS

6.20

Specialty Business Services Industry

Max
15.61
Q3
6.91
Median
3.29
Q1
0.04
Min
-8.58

MMS’s Interest Coverage Ratio of 6.20 is positioned comfortably within the norm for the Specialty Business Services industry, indicating a standard and healthy capacity to cover its interest payments.

ARMK vs. MMS: A comparison of their Interest Coverage against the Specialty Business Services industry benchmark.

Financial Strength at a Glance

SymbolARMKMMS
Current Ratio (TTM)1.211.84
Quick Ratio (TTM)1.081.84
Debt-to-Equity Ratio (TTM)2.270.97
Debt-to-Asset Ratio (TTM)0.510.39
Net Debt-to-EBITDA Ratio (TTM)4.742.57
Interest Coverage Ratio (TTM)2.336.20

Growth

The following charts compare key year-over-year (YoY) growth metrics for ARMK and MMS. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ARMK vs. MMS: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ARMK vs. MMS: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ARMK vs. MMS: A comparison of their annual year-over-year 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.

MMS

1.67%

Specialty Business Services Industry

Max
4.40%
Q3
1.37%
Median
0.74%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.67%, MMS offers a more attractive income stream than most of its peers in the Specialty Business Services industry, signaling a strong commitment to shareholder returns.

ARMK vs. MMS: A comparison of their Dividend Yield against the Specialty Business Services industry benchmark.

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.

MMS

23.75%

Specialty Business Services Industry

Max
79.38%
Q3
51.62%
Median
23.75%
Q1
1.08%
Min
0.00%

MMS’s Dividend Payout Ratio of 23.75% is within the typical range for the Specialty Business Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARMK vs. MMS: A comparison of their Payout Ratio against the Specialty Business Services industry benchmark.

Dividend at a Glance

SymbolARMKMMS
Dividend Yield (TTM)0.96%1.67%
Dividend Payout Ratio (TTM)30.38%23.75%

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.

MMS

13.66

Specialty Business Services Industry

Max
52.23
Q3
42.83
Median
32.04
Q1
16.00
Min
2.24

In the lower quartile for the Specialty Business Services industry, MMS’s P/E Ratio of 13.66 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ARMK vs. MMS: A comparison of their P/E Ratio against the Specialty Business Services industry benchmark.

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.

MMS

-0.37

Specialty Business Services Industry

Max
4.93
Q3
3.34
Median
2.19
Q1
0.14
Min
0.06

MMS has a negative Forward PEG Ratio of -0.37. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.

ARMK vs. MMS: A comparison of their Forward PEG Ratio against the Specialty Business Services industry benchmark.

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.

MMS

0.75

Specialty Business Services Industry

Max
6.26
Q3
3.60
Median
1.90
Q1
0.73
Min
0.34

MMS’s P/S Ratio of 0.75 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.

ARMK vs. MMS: A comparison of their P/S Ratio against the Specialty Business Services industry benchmark.

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.

MMS

2.46

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.

ARMK vs. MMS: A comparison of their P/B Ratio against the Specialty Business Services industry benchmark.

Valuation at a Glance

SymbolARMKMMS
Price-to-Earnings Ratio (P/E, TTM)32.5613.66
Forward PEG Ratio (TTM)2.42-0.37
Price-to-Sales Ratio (P/S, TTM)0.640.75
Price-to-Book Ratio (P/B, TTM)3.752.46
Price-to-Free Cash Flow Ratio (P/FCF, TTM)30.2218.54
EV-to-EBITDA (TTM)13.739.46
EV-to-Sales (TTM)0.971.03