Aramark (NYSE:ARMK – Get Free Report) and Kura Sushi USA (NASDAQ:KRUS – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Earnings & Valuation
This table compares Aramark and Kura Sushi USA”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aramark | $18.51 billion | 0.77 | $326.39 million | $1.43 | 37.91 |
| Kura Sushi USA | $328.28 million | 1.03 | -$4.64 million | ($0.38) | -73.55 |
Aramark has higher revenue and earnings than Kura Sushi USA. Kura Sushi USA is trading at a lower price-to-earnings ratio than Aramark, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Aramark and Kura Sushi USA, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aramark | 0 | 2 | 13 | 0 | 2.87 |
| Kura Sushi USA | 1 | 6 | 4 | 1 | 2.42 |
Aramark presently has a consensus price target of $69.25, suggesting a potential upside of 27.75%. Kura Sushi USA has a consensus price target of $60.22, suggesting a potential upside of 115.46%. Given Kura Sushi USA’s higher probable upside, analysts clearly believe Kura Sushi USA is more favorable than Aramark.
Institutional & Insider Ownership
65.5% of Kura Sushi USA shares are owned by institutional investors. 2.8% of Aramark shares are owned by company insiders. Comparatively, 2.3% of Kura Sushi USA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Aramark has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Kura Sushi USA has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
Profitability
This table compares Aramark and Kura Sushi USA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aramark | 1.93% | 17.68% | 4.21% |
| Kura Sushi USA | -1.41% | -0.85% | -0.42% |
Summary
Aramark beats Kura Sushi USA on 9 of the 14 factors compared between the two stocks.
About Aramark
Aramark provides food and facilities management services to organizations around the world. Its clients include schools and universities, hospitals and other healthcare providers, businesses, sports and entertainment venues, and correctional institutions. The company plans and operates dining programs, including meal preparation, catering, concessions, and retail food services. It also provides facilities services such as maintenance, cleaning, and related operational support tailored to client needs.
About Kura Sushi USA
Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States under the Kura Revolving Sushi Bar brand. Its restaurants feature a conveyor-belt dining format in which customers select dishes as they pass by, along with touchscreen ordering and automated systems designed to support restaurant operations. The company’s menu includes a variety of sushi and other Japanese dishes, including nigiri, rolls, sashimi, appetizers, desserts and beverages. Kura Sushi USA also incorporates interactive elements into the dining experience, such as its Bikkura-Pon reward system, which offers customers games and prizes based on returned plates.
Receive News & Ratings for Aramark Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aramark and related companies with MarketBeat.com's FREE daily email newsletter.
