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AOS vs ARMK

AOS
A. O. Smith Corporation
NEUTRAL
Price
$72.46
Market Cap
$10.15B
Sector
Industrials
AI Confidence
75%
ARMK
Aramark
NEUTRAL
Price
$39.08
Market Cap
$10.28B
Sector
Industrials
AI Confidence
65%

Valuation

P/E Ratio
AOS
19.69
ARMK
32.3
Forward P/E
AOS
17.96
ARMK
15.09
P/B Ratio
AOS
5.47
ARMK
3.26
P/S Ratio
AOS
2.65
ARMK
0.56
EV/EBITDA
AOS
12.93
ARMK
11.56

Profitability

Gross Margin
AOS
38.51%
ARMK
15.67%
Operating Margin
AOS
18.63%
ARMK
5.33%
Profit Margin
AOS
13.85%
ARMK
1.76%
ROE
AOS
28.21%
ARMK
10.53%
ROA
AOS
13.88%
ARMK
4.11%

Growth

Revenue Growth
AOS
4.4%
ARMK
14.3%
Earnings Growth
AOS
14.6%
ARMK
-30.0%

Financial Health

Debt/Equity
AOS
0.12
ARMK
1.81
Current Ratio
AOS
1.54
ARMK
0.99
Quick Ratio
AOS
0.89
ARMK
0.81

Dividends

Dividend Yield
AOS
1.92%
ARMK
1.22%
Payout Ratio
AOS
36.66%
ARMK
34.43%

AI Verdict

AOS NEUTRAL

AOS exhibits mixed financial health with a weak Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score for distress risk assessment. Despite solid profitability metrics like a 28.21% ROE and 18.63% operating margin, the company faces headwinds from declining Q/Q EPS growth (-12.1%) and bearish insider activity. Valuation is stretched relative to Graham's defensive standard ($33.12) but aligns with growth-based intrinsic value ($106.35), while trading below analyst target ($78.27). The stock shows resilience in earnings beats over time, though recent deceleration and technical bearishness temper optimism.

Strengths
Strong return on equity (28.21%) well above sector average (6.07%)
Low debt/equity ratio (0.12) indicating conservative capital structure
Consistent earnings beat history with 3 out of last 4 quarters exceeding estimates
Risks
Weak Piotroski F-Score (4/9) signaling suboptimal financial health
Negative Q/Q EPS growth (-12.1%) despite positive YoY growth
Bearish insider sentiment with $3M in net insider selling over last 6 months
ARMK NEUTRAL

ARMK's deterministic health signals are concerning, with a Piotroski F-Score of 4/9 indicating marginal financial stability and no available Altman Z-Score to confirm solvency safety. The stock trades at a significant premium to its Graham Number of $18.06 and intrinsic value of $8.47, supported by strong revenue growth and analyst optimism, but profitability and earnings trends are inconsistent. While the company shows top-line momentum and operates efficiently relative to peers in a highly leveraged sector, weak margins, declining earnings, and technical bearishness temper enthusiasm. Analysts recommend a 'buy', yet insider sentiment and trading activity are neutral, suggesting no strong conviction from insiders.

Strengths
Revenue growth of 14.3% YoY outpaces sector average despite macro pressures
Forward P/E of 15.09 suggests improved earnings expectations relative to current P/E of 32.30
ROE of 10.53% exceeds sector average of 6.23%, indicating efficient equity utilization
Risks
Piotroski F-Score of 4/9 indicates weak financial health with potential operational inefficiencies
Earnings declining YoY (-30.0%) and QoQ (-28.8%), signaling profit compression despite revenue growth
Current Ratio of 0.99 and Quick Ratio of 0.81 suggest near-term liquidity risk

Compare Another Pair

AOS vs ARMK: Head-to-Head Comparison

This page compares A. O. Smith Corporation (AOS) and Aramark (ARMK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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