Financial Survey: Cintas Corporation (CTAS) versus its Competitors
Cintas Corporation (NASDAQ: CTAS) is one of 98 publicly-traded companies in the “Business Support Services” industry, but how does it compare to its competitors? We will compare Cintas Corporation to related businesses based off the strength of its earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.
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 1.2% and pay out 27.3% of their earnings in the form of a dividend. Cintas Corporation has increased its dividend for 34 consecutive years. Cintas Corporation lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares Cintas Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cintas Corporation Competitors||-129.07%||-181.06%||-5.92%|
Insider and Institutional Ownership
66.4% of Cintas Corporation shares are owned by institutional investors. Comparatively, 63.0% of shares of all “Business Support Services” companies are owned by institutional investors. 19.1% of Cintas Corporation shares are owned by insiders. Comparatively, 11.9% of shares of all “Business Support Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Cintas Corporation and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Cintas Corporation||$5.32 billion||$1.05 billion||30.53|
|Cintas Corporation Competitors||$1.11 billion||$177.91 million||-15,154.33|
Cintas Corporation has higher revenue and earnings than its competitors. Cintas Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.
This is a summary of recent ratings for Cintas Corporation and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cintas Corporation Competitors||731||2077||2662||84||2.38|
Cintas Corporation currently has a consensus target price of $133.78, indicating a potential upside of 0.04%. All “Business Support Services” companies have a potential downside of 4.56%. Given Cintas Corporation’s higher possible upside, equities research analysts plainly believe Cintas Corporation is more favorable than its competitors.
Volatility and Risk
Cintas Corporation has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Cintas Corporation’s competitors have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.
Cintas Corporation beats its competitors on 9 of the 15 factors compared.
About Cintas Corporation
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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