Financial Analysis: Cintas (CTAS) and Naked Brand Group (NAKD)
Cintas (NASDAQ:CTAS) and Naked Brand Group (NASDAQ:NAKD) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Institutional & Insider Ownership
65.9% of Cintas shares are owned by institutional investors. Comparatively, 13.8% of Naked Brand Group shares are owned by institutional investors. 19.1% of Cintas shares are owned by company insiders. Comparatively, 30.9% of Naked Brand Group shares are owned 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.
This table compares Cintas and Naked Brand Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Naked Brand Group||-83.99%||-65.59%||-54.62%|
Volatility & Risk
Cintas has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Naked Brand Group has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500.
Cintas pays an annual dividend of $2.05 per share and has a dividend yield of 1.2%. Naked Brand Group 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 35 consecutive years.
This is a summary of recent ratings and price targets for Cintas and Naked Brand Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Naked Brand Group||0||0||0||0||N/A|
Cintas currently has a consensus target price of $200.45, suggesting a potential upside of 12.74%. Given Cintas’ higher possible upside, equities analysts clearly believe Cintas is more favorable than Naked Brand Group.
Earnings and Valuation
This table compares Cintas and Naked Brand Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cintas||$6.48 billion||2.93||$842.58 million||$5.94||29.93|
|Naked Brand Group||$2.85 million||9.18||-$5.78 million||N/A||N/A|
Cintas has higher revenue and earnings than Naked Brand Group.
Cintas beats Naked Brand Group on 11 of the 15 factors compared between the two stocks.
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.
About Naked Brand Group
Naked Brand Group Limited designs, manufactures, and markets intimate, apparel, and swimwear products worldwide. The company has a portfolio of 11 company-owned and licensed brands, including Heidi Klum Intimates, Heidi Klum Accessories, Bendon, Fayreform, Pleasure State, Lovable, Heidi Klum Swim, Naked, Hickory, Bendon Man, and Davenport. It operates through approximately 6,000 retail stores and 61 company-owned Bendon retail and outlet stores in Australia and New Zealand, as well as e-commerce sites. The company is based in Alexandria, Australia.
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