Critical Investigation: Aramark (NYSE: ARMK) vs. ONE Group Hospitality (NASDAQ: STKS)
Aramark (NYSE: ARMK – Get a rating) and ONE Group Hospitality (NASDAQ: STKS – Get a rating) are both consumer staples, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Risk and Volatility
Aramark has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, ONE Group Hospitality has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Aramark and ONE Group Hospitality.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Aramark||$12.10 billion||0.70||-90.83 million dollars||$0.58||56.81|
|ONE Group Hospitality||$277.18 million||1.06||$31.35 million||$1.03||8.79|
ONE Group Hospitality has lower revenues, but higher profits than Aramark. ONE Group Hospitality trades at a lower price-to-earnings ratio than Aramark, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
37.1% of ONE Group Hospitality shares are held by institutional investors. 10.3% of Aramark’s shares are held by insiders. By comparison, 19.3% of ONE Group Hospitality shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.
This table compares the net margins, return on equity and return on assets of Aramark and ONE Group Hospitality.
|Net margins||Return on equity||return on assets|
|ONE Group Hospitality||11.62%||42.74%||10.25%|
This is a breakdown of current price recommendations and targets for Aramark and ONE Group Hospitality, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|ONE Group Hospitality||0||0||3||0||3.00|
Aramark currently has a consensus target price of $39.43, indicating a potential upside of 19.66%. ONE Group Hospitality has a consensus target price of $18.00, indicating 98.90% upside potential. Given ONE Group Hospitality’s stronger consensus rating and higher possible upside, analysts clearly believe that ONE Group Hospitality is more favorable than Aramark.
ONE Group Hospitality beats Aramark on 11 out of 14 factors compared between the two stocks.
About Aramark (Get a rating)
Aramark provides food, facilities and uniform services to education, healthcare, business and industrial, sports, recreation and corrections customers in the United States and around the world . It operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The Company offers food-related managed services, including catering, catering, foodservice management and convenience-focused retail services; non-clinical support services, such as patient food and nutrition, food retail and supply services; and plant operation and maintenance, custodial/housekeeping, energy management, grounds maintenance and capital project management services. It also offers restaurants, catering, convenience stores and on-site dining services; beverage services and vending machines; and facility management services including landscaping, transportation, payment and other facility consulting services related to the operation of buildings. In addition, the company offers concession, banquet and catering services; retail services and services for the sale of goods, leisure and accommodation; and facility management services in sports, entertainment and recreation facilities. Additionally, the company offers correctional food; and operates commissaries, laundry facilities and property rooms. In addition, it provides design, sourcing and manufacturing, delivery, cleaning, maintenance and marketing services for uniforms and accessories; provides managed restroom services; and rents uniforms, workwear, outerwear, particulate-free apparel, and non-apparel items and related services, including mats, shop towels, and first aid supplies. The company was formerly known as ARAMARK Holdings Corporation and changed its name to Aramark in May 2014. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.
About ONE Group Hospitality (Get a rating)
The ONE Group Hospitality, Inc., a hospitality company, develops, owns, operates, manages and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill and ONE Hospitality segments. The company also provides turnkey catering services for hospitality venues, including hotels, casinos and other venues. Its hotel catering solutions include the development, management and operation of restaurants, bars, rooftops, swimming pools, banquets, catering, private dining rooms, room service and mini-bars; and offers hospitality consulting and advisory services. The Company operates restaurants primarily under the STK and Kona Grill brands. As of December 31, 2021, it owned, operated, managed or licensed 60 locations, including 23 STK and 24 Kona Grills in North America, Europe and the Middle East, as well as 13 F&B locations at seven hotels and casinos in the United States. and Europa. ONE Group Hospitality, Inc. was founded in 2004 and is headquartered in Denver, Colorado.
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