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ARMK vs DCI

ARMK
Aramark
NEUTRAL
Price
$39.08
Market Cap
$10.28B
Sector
Industrials
AI Confidence
65%
DCI
Donaldson Company, Inc.
BEARISH
Price
$88.96
Market Cap
$10.3B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ARMK
32.3
DCI
27.8
Forward P/E
ARMK
15.09
DCI
20.35
P/B Ratio
ARMK
3.26
DCI
6.54
P/S Ratio
ARMK
0.56
DCI
2.75
EV/EBITDA
ARMK
11.56
DCI
16.19

Profitability

Gross Margin
ARMK
15.67%
DCI
34.6%
Operating Margin
ARMK
5.33%
DCI
13.57%
Profit Margin
ARMK
1.76%
DCI
10.09%
ROE
ARMK
10.53%
DCI
24.27%
ROA
ARMK
4.11%
DCI
11.8%

Growth

Revenue Growth
ARMK
14.3%
DCI
3.0%
Earnings Growth
ARMK
-30.0%
DCI
-1.3%

Financial Health

Debt/Equity
ARMK
1.81
DCI
0.43
Current Ratio
ARMK
0.99
DCI
2.29
Quick Ratio
ARMK
0.81
DCI
1.31

Dividends

Dividend Yield
ARMK
1.22%
DCI
1.35%
Payout Ratio
ARMK
34.43%
DCI
36.56%

AI Verdict

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
DCI BEARISH

DCI presents a stable financial health profile with a Piotroski F-Score of 4/9 and low leverage, but it is severely overvalued. The current price of $88.96 trades at a massive premium to its Graham Number ($31.29) and Intrinsic Value ($22.40). With stagnant revenue growth (3%) and negative earnings growth (-1.3%), the current P/E of 27.80 is fundamentally unsupported. Bearish insider selling and a 0/100 technical trend further suggest a lack of immediate catalyst for growth.

Strengths
Strong Return on Equity (ROE) of 24.27%
Low Debt/Equity ratio of 0.43 indicating conservative leverage
High liquidity with a Current Ratio of 2.29
Risks
Extreme valuation gap between market price and intrinsic/Graham value
Negative earnings growth (-1.30% YoY and -3.50% Q/Q)
Bearish insider activity with $3.57M in sales and zero buys

Compare Another Pair

ARMK vs DCI: Head-to-Head Comparison

This page compares Aramark (ARMK) and Donaldson Company, Inc. (DCI) 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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