Analyzing Cintas (NASDAQ:CTAS) and Kontoor Brands (NASDAQ:KTB)

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cintas $6.48 billion 3.81 $842.58 million $5.94 39.72
Kontoor Brands N/A N/A N/A N/A N/A

Cintas has higher revenue and earnings than Kontoor Brands.

Analyst Ratings

This is a summary of recent ratings for Cintas and Kontoor Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cintas 1 4 5 0 2.40
Kontoor Brands 1 3 2 0 2.17

Cintas presently has a consensus price target of $194.72, suggesting a potential downside of 17.48%. Kontoor Brands has a consensus price target of $28.38, suggesting a potential downside of 1.58%. Given Kontoor Brands’ higher possible upside, analysts clearly 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 increased its dividend for 36 consecutive years.

Profitability

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 12.44% 25.85% 11.17%
Kontoor Brands N/A N/A N/A

Institutional and Insider 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, endowments and large money managers believe a company is poised for long-term growth.

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.