G&K Services (GK) & Costa (ATX) Critical Survey
Costa (NASDAQ: ATX) and G&K Services (NASDAQ:GK) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitabiliy and earnings.
Valuation and Earnings
This table compares Costa and G&K Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
G&K Services pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. Costa does not pay a dividend. G&K Services pays out 54.7% of its earnings in the form of a dividend.
This table compares Costa and G&K Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
88.6% of G&K Services shares are owned by institutional investors. 3.7% of G&K Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Costa and G&K Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
G&K Services has a consensus price target of $104.00, indicating a potential upside of 6.68%. Given G&K Services’ higher probable upside, analysts clearly believe G&K Services is more favorable than Costa.
G&K Services beats Costa on 8 of the 9 factors compared between the two stocks.
Costa Company Profile
Costa Inc, formerly A. T. Cross Company is a designer and marketer of branded personal accessories, including writing instruments, reading glasses, personal and business accessories and sunglasses. The Company’s Cross Optical Group (COG) consists of its wholly owned subsidiary, Cross Optical Group, Inc. and is the legal entity of the Company’s two sunglass brands: Costa and Native. The Company’s COG designs, manufactures and markets polarized sunglasses under the brand names Costa and Native. The Company’s brands offer sunglasses in more than 75 styles and 25 lens options. In September 2013, the Company sold its Cross Accessory Division and the rights to the A.T. Cross name, which was associated with the writing instrument business. Effective February 3, 2014, Essilor International SA acquired Costa Inc.
G&K Services Company Profile
G&K Services, Inc. is a service-focused provider of branded uniform and facility services programs. The Company provides a range of workwear and protective safety apparel through rental and direct purchase programs. The Company also supplies various facility products and services, including floor mats, towels, mops, restroom hygiene products, and first aid supplies. It also manufactures certain work apparel garments that are used to support its garment rental and direct purchase programs. It operates in two segments: United States (includes the Dominican Republic) and Canada. The Company operated from approximately 160 locations, as of July 2, 2016. The Company serves a diverse base of customer locations in various industries, including automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, retail, restaurants, construction and trades, hospitality, government, healthcare and others.
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