Kontoor Brands (NYSE:KTB) and Cintas (NASDAQ:CTAS) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Kontoor Brands and Cintas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kontoor Brands 1 4 3 0 2.25
Cintas 1 4 6 0 2.45

Kontoor Brands currently has a consensus price target of $29.58, indicating a potential upside of 13.22%. Cintas has a consensus price target of $194.72, indicating a potential downside of 15.87%. Given Kontoor Brands’ higher probable upside, analysts plainly believe Kontoor Brands is more favorable than Cintas.

Dividends

Cintas pays an annual dividend of $2.05 per share and has a dividend yield of 0.9%. Kontoor Brands does not pay a dividend. Cintas pays out 34.5% of its earnings in the form of a dividend. Cintas has raised its dividend for 36 consecutive years.

Insider and 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Kontoor Brands and Cintas’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kontoor Brands N/A N/A N/A N/A N/A
Cintas $6.48 billion 3.74 $842.58 million $5.94 38.96

Cintas has higher revenue and earnings than Kontoor Brands.

Profitability

This table compares Kontoor Brands and Cintas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kontoor Brands N/A N/A N/A
Cintas 12.44% 25.85% 11.17%

Summary

Cintas beats Kontoor Brands on 10 of the 12 factors compared between the two stocks.

About Cintas

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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