Cintas (NASDAQ:CTAS) and Kontoor Brands (NYSE:KTB) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
Insider & Institutional Ownership
67.1% of Cintas shares are owned by institutional investors. 19.1% of Cintas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Cintas pays an annual dividend of $2.05 per share and has a dividend yield of 0.8%. Kontoor Brands does not pay a dividend. Cintas pays out 34.5% of its earnings in the form of a dividend. Cintas has increased its dividend for 36 consecutive years.
This is a breakdown of recent ratings and target prices for Cintas and Kontoor Brands, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cintas presently has a consensus price target of $194.72, suggesting a potential downside of 19.68%. Kontoor Brands has a consensus price target of $29.58, suggesting a potential downside of 11.69%. Given Kontoor Brands’ higher probable upside, analysts clearly believe Kontoor Brands is more favorable than Cintas.
Valuation & Earnings
This table compares Cintas and Kontoor Brands’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cintas||$6.48 billion||3.91||$842.58 million||$5.94||40.81|
Cintas has higher revenue and earnings than Kontoor Brands.
This table compares Cintas and Kontoor Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cintas beats Kontoor Brands on 10 of the 12 factors compared between the two stocks.
Cintas Company Profile
Cintas Corporation provides corporate identity uniforms and related business services primarily in North America, Latin America, Europe, and Asia. It operates through Uniform Rental and Facility Services and First Aid and Safety Services segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, and carpet and tile cleaning services, as well as sells uniforms directly. It also offers first aid and safety services, and fire protection products and services. The company offers its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. Cintas Corporation was founded in 1968 and is based in Cincinnati, Ohio.
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