Contrasting Cintas Corporation (CTAS) and Its Competitors

Cintas Corporation (NASDAQ: CTAS) is one of 98 public companies in the “Business Support Services” industry, but how does it contrast to its peers? We will compare Cintas Corporation to related companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, analyst recommendations and earnings.

Valuation & Earnings

This table compares Cintas Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cintas Corporation $5.32 billion $1.05 billion 30.75
Cintas Corporation Competitors $1.11 billion $177.91 million -15,043.68

Cintas Corporation has higher revenue and earnings than its peers. Cintas Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Cintas Corporation pays an annual dividend of $1.33 per share and has a dividend yield of 1.0%. Cintas Corporation pays out 30.4% of its earnings in the form of a dividend. As a group, “Business Support Services” companies pay a dividend yield of 1.1% and pay out 27.3% of their earnings in the form of a dividend. Cintas Corporation has raised its dividend for 34 consecutive years. Cintas Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

66.4% of Cintas Corporation shares are held by institutional investors. Comparatively, 63.0% of shares of all “Business Support Services” companies are held by institutional investors. 19.1% of Cintas Corporation shares are held by insiders. Comparatively, 12.0% of shares of all “Business Support Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Cintas Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cintas Corporation 8.90% 23.38% 10.19%
Cintas Corporation Competitors -129.12% -181.17% -5.95%

Analyst Recommendations

This is a summary of current ratings for Cintas Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cintas Corporation 1 7 4 0 2.25
Cintas Corporation Competitors 732 2084 2670 84 2.38

Cintas Corporation currently has a consensus target price of $133.78, suggesting a potential downside of 0.67%. As a group, “Business Support Services” companies have a potential downside of 4.32%. Given Cintas Corporation’s higher probable upside, research analysts clearly believe Cintas Corporation is more favorable than its peers.

Volatility & Risk

Cintas Corporation has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Cintas Corporation’s peers have a beta of 1.12, meaning that their average share price is 12% more volatile than the S&P 500.

Summary

Cintas Corporation beats its peers on 9 of the 15 factors compared.

Cintas Corporation Company Profile

Cintas Corporation is a provider of corporate identity uniforms through rental and sales programs, as well as a provider of related business services, including entrance mats, restroom cleaning services and supplies, carpet and tile cleaning services, first aid and safety services and fire protection products and services. Its segments include uniform rental and facility services, and first aid and safety services. Its uniform rental and facility service segment offers services, which include rental and servicing of uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items. Its first aid and safety service segment offers services, which include first aid and safety products and services. Rental processing plants, rental branches, first aid and safety facilities, fire protection facilities, direct sales offices, distribution centers and manufacturing facilities are all utilized by the businesses included in All Other.

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