Contrasting DCC (OTCMKTS:DCCPF) & Aramark (NYSE:ARMK)

Aramark (NYSE:ARMK) and DCC (OTCMKTS:DCCPF) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Aramark and DCC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aramark	0	2	7	0	2.78
DCC	1	0	1	0	2.00

Aramark currently has a consensus target price of $48.38, indicating a potential upside of 15.48%. Given Aramark’s stronger consensus rating and higher probable upside, research analysts plainly believe Aramark is more favorable than DCC.

Valuation & Earnings

This table compares Aramark and DCC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aramark	$18.51 billion	0.59	$326.39 million	$1.19	35.20
DCC	$22.98 billion	0.30	$263.46 million	N/A	N/A

Aramark has higher earnings, but lower revenue than DCC.

Risk & Volatility

Aramark has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, DCC has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares Aramark and DCC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aramark	1.69%	16.15%	3.75%
DCC	N/A	N/A	N/A

Summary

Aramark beats DCC on 9 of the 10 factors compared between the two stocks.

About Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, capital program management, payment services, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

About DCC

DCC plc provides sales, marketing, and support services worldwide. The company operates through DCC Energy, DCC Healthcare, and DCC Technology segments. It sells and markets liquefied petroleum gas (LPG), refrigerants, and natural gas; markets, sells, and retails transport and commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides logistics services. It also offers products and services to healthcare providers, and health and beauty brand owners; contract manufacturing services to the health and beauty sector; nutrition products, such as vitamins and health supplements; beauty products; and product development, formulation, manufacturing, and packaging services. In, addition it distributes consumer technology products, including smart home products, peripherals and software, and accessories, as well as provides supply chain services. The company was founded in 1976 and is headquartered in Dublin, Ireland.