Analyzing Wolters Kluwer (OTCMKTS:WTKWY) and Aramark (NYSE:ARMK)

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

Insider and Institutional Ownership

0.0% of Wolters Kluwer shares are owned by institutional investors. 2.8% of Aramark shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aramark	1.84%	17.05%	4.02%
Wolters Kluwer	N/A	N/A	N/A

Volatility and Risk

Aramark has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Wolters Kluwer has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Dividends

Aramark pays an annual dividend of $0.48 per share and has a dividend yield of 0.8%. Wolters Kluwer pays an annual dividend of $3.13 per share and has a dividend yield of 4.6%. Aramark pays out 35.8% of its earnings in the form of a dividend. Aramark has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Aramark and Wolters Kluwer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aramark	0	2	11	0	2.85
Wolters Kluwer	0	2	3	0	2.60

Aramark currently has a consensus target price of $58.29, indicating a potential upside of 3.12%. Given Aramark’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Aramark is more favorable than Wolters Kluwer.

Earnings and Valuation

This table compares Aramark and Wolters Kluwer”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aramark	$19.41 billion	0.77	$326.39 million	$1.34	42.19
Wolters Kluwer	$6.93 billion	2.26	$1.48 billion	N/A	N/A

Wolters Kluwer has lower revenue, but higher earnings than Aramark.

Summary

Aramark beats Wolters Kluwer on 10 of the 15 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 Wolters Kluwer

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through Health; Tax & Accounting; Financial & Corporate Compliance; Legal & Regulatory; and Corporate Performance & ESG segments. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It serves hospitals, healthcare organizations, clinicians, students, schools, libraries, payers, life sciences, and pharmacies. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It serves accounting firms, tax and auditing departments, businesses of all sizes, government agencies, libraries, and universities. The Financial & Corporate Compliance segment offers solutions for legal entity compliance and banking product compliance. It serves corporations, small businesses, law firms, banks, non-bank lenders, credit unions, insurers, and securities firms. The Legal & Regulatory segment provides information, insights, and workflow solutions for changing regulatory obligations, managing risk, and increasing efficiency. It provides solutions for legal and compliance professionals in law firms, corporate legal departments, universities, and government organizations. The Corporate Performance & ESG segment offers enterprise software to drive financial and sustainability performance and manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact. It serves corporate finance, audit, planning, risk, environmental, health and safety, operational risk management, and sustainability professionals in corporations, banks, and governments. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.