Head-To-Head Comparison: CBIZ (CBZ) vs. Cintas (CTAS)

CBIZ (NYSE: CBZ) and Cintas (NASDAQ:CTAS) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Dividends

Cintas pays an annual dividend of $1.62 per share and has a dividend yield of 1.0%. CBIZ does not pay a dividend. Cintas pays out 36.2% of its earnings in the form of a dividend. CBIZ has raised its dividend for 35 consecutive years.

Volatility & Risk

CBIZ has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Cintas has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for CBIZ and Cintas, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBIZ 0 0 0 0 N/A
Cintas 1 7 5 0 2.31

Cintas has a consensus price target of $153.50, indicating a potential downside of 8.15%. Given Cintas’ higher possible upside, analysts clearly believe Cintas is more favorable than CBIZ.

Institutional and Insider Ownership

84.0% of CBIZ shares are owned by institutional investors. Comparatively, 65.9% of Cintas shares are owned by institutional investors. 6.9% of CBIZ shares are owned by insiders. Comparatively, 18.9% of Cintas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares CBIZ and Cintas’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBIZ $855.34 million 1.14 $40.06 million $0.90 19.83
Cintas $5.32 billion 3.34 $480.70 million $4.47 37.39

Cintas has higher revenue and earnings than CBIZ. CBIZ is trading at a lower price-to-earnings ratio than Cintas, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
CBIZ 5.89% 9.33% 4.30%
Cintas 9.23% 23.23% 8.94%

Summary

Cintas beats CBIZ on 13 of the 16 factors compared between the two stocks.

CBIZ Company Profile

CBIZ, Inc. (CBIZ) is engaged in the professional services business. The Company operates its professional services business through acquiring and integrating accounting and financial service providers, group health benefits consulting firms, property and casualty brokerage firms, payroll service providers, and valuation and other service firms throughout the United States. Its segments include Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. The Financial Services group includes accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group includes group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices segment includes managed networking and hardware services, and healthcare consulting.

Cintas Company Profile

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.

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