Financial Contrast: Cintas Corporation (CTAS) & Exponent (EXPO)
Cintas Corporation (NASDAQ: CTAS) and Exponent (NASDAQ:EXPO) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
This is a breakdown of current recommendations and price targets for Cintas Corporation and Exponent, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cintas Corporation presently has a consensus target price of $139.88, indicating a potential downside of 6.44%. Exponent has a consensus target price of $79.50, indicating a potential upside of 9.81%. Given Exponent’s stronger consensus rating and higher probable upside, analysts clearly believe Exponent is more favorable than Cintas Corporation.
Earnings and Valuation
This table compares Cintas Corporation and Exponent’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Cintas Corporation||$5.32 billion||2.99||$480.70 million||$5.08||29.43|
|Exponent||$315.08 million||5.93||$47.48 million||$2.05||35.32|
Cintas Corporation has higher revenue and earnings than Exponent. Cintas Corporation is trading at a lower price-to-earnings ratio than Exponent, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
65.7% of Cintas Corporation shares are held by institutional investors. Comparatively, 88.6% of Exponent shares are held by institutional investors. 18.9% of Cintas Corporation shares are held by company insiders. Comparatively, 2.8% of Exponent shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Cintas Corporation pays an annual dividend of $1.62 per share and has a dividend yield of 1.1%. Exponent pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Cintas Corporation pays out 31.9% of its earnings in the form of a dividend. Exponent pays out 41.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cintas Corporation has increased its dividend for 34 consecutive years.
This table compares Cintas Corporation and Exponent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Cintas Corporation has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Exponent has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Cintas Corporation beats Exponent on 9 of the 17 factors compared between the two stocks.
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.
Exponent, Inc. (Exponent), along with its subsidiaries, is a science and engineering consulting company. Exponent provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project-by-project basis. It operates in two segments: Engineering and Other Scientific, and Environmental and Health. Its Engineering and Other Scientific segment includes biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences and vehicle analysis services. Its Environmental and Health segment includes chemical regulation and food safety; ecological and biological sciences; environmental and earth sciences, and health sciences. Exponent serves clients in automotive, government, health, insurance, manufacturing and technology, among others.
Receive News & Ratings for Cintas Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cintas Corporation and related companies with MarketBeat.com's FREE daily email newsletter.