Critical Analysis: Aramark (NYSE:ARMK) versus YY Group (NASDAQ:YYGH)

YY Group (NASDAQ:YYGH) and Aramark (NYSE:ARMK) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
YY Group	N/A	N/A	N/A
Aramark	2.02%	15.67%	3.67%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YY Group	$41.10 million	2.15	-$4.84 million	N/A	N/A
Aramark	$17.87 billion	0.59	$262.52 million	$1.35	29.66

Aramark has higher revenue and earnings than YY Group.

Analyst Recommendations

This is a summary of current ratings and price targets for YY Group and Aramark, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YY Group	0	0	0	0	0.00
Aramark	0	1	8	1	3.00

Aramark has a consensus price target of $45.4444, indicating a potential upside of 13.51%. Given Aramark’s stronger consensus rating and higher probable upside, analysts plainly believe Aramark is more favorable than YY Group.

Volatility & Risk

YY Group has a beta of 2.69, suggesting that its stock price is 169% more volatile than the S&P 500. Comparatively, Aramark has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Summary

Aramark beats YY Group on 9 of the 11 factors compared between the two stocks.

About YY Group

YY Group Holding Limited, a data and technology driven company, provides manpower outsourcing and cleaning services in Singapore and Malaysia. Its cleaning services include commercial cleaning for offices and schools; hospitality cleaning for hotels and shopping centers; industrial cleaning, facade cleaning, disinfection, and stewarding services for meetings, incentives, conferences, and exhibitions, as well as banquets; and pest control services. The company also offers cleaning robots and machines to enhance cleaning performance by deploying them at designated premises. In addition, it provides YY Smart iClean App, which is a smart toilet central management platform. Further, the company offers manpower contracting services; employment agencies; general cleaning services; manpower outsourcing with information technology solution; management consulting; and employment placement and recruitment services. YY Group Holding Limited was founded in 2010 and is headquartered in Singapore.

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.