Cintas (NASDAQ: CTAS) and Checkpoint Systems (NYSE:CKP) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Cintas pays an annual dividend of $1.62 per share and has a dividend yield of 1.0%. Checkpoint Systems does not pay a dividend. Cintas pays out 36.2% of its earnings in the form of a dividend. Checkpoint Systems has increased its dividend for 35 consecutive years.
This table compares Cintas and Checkpoint Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cintas||$5.32 billion||3.34||$480.70 million||$4.47||37.39|
Cintas has higher revenue and earnings than Checkpoint Systems. Checkpoint Systems is trading at a lower price-to-earnings ratio than Cintas, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Cintas has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Checkpoint Systems has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.
This is a summary of recent ratings for Cintas and Checkpoint Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cintas currently has a consensus target price of $153.50, indicating a potential downside of 8.15%. Given Cintas’ higher possible upside, research analysts clearly believe Cintas is more favorable than Checkpoint Systems.
Insider and Institutional Ownership
66.2% of Cintas shares are owned by institutional investors. 18.9% of Cintas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Cintas and Checkpoint Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cintas beats Checkpoint Systems on 11 of the 14 factors compared between the two stocks.
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.
About Checkpoint Systems
Checkpoint Systems, Inc. is a United States-based supplier of merchandise availability solutions for the retail industry. The Company provides end-to-end solutions enabling retailers to achieve real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft. It offers merchandise availability solutions, such as shrink management, including antennas, labels and tags, source tagging, deactivation, remote service and support, and Alpha High Theft Solutions, and merchandise visibility solutions, including inventory management, asset tracking and OneTag Program. OneTag Program allows retailers to obtain the benefits of inventory visibility and loss prevention with a single radio frequency identification tag. It offers apparel labelling solutions, such as Trim, including woven labels, printed fabric labels and specialty trim services, and brand merchandising, including printed items and self-adhesive. It serves markets, such as electronics and grocery.
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