Cintas (NASDAQ:CTAS) versus CAPITA (OTCMKTS:CTAGY) Head-To-Head Review

Cintas (NASDAQ:CTAS) and CAPITA (OTCMKTS:CTAGY) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Cintas and CAPITA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cintas	$10.34 billion	7.89	$1.81 billion	$4.41	45.89
CAPITA	$3.09 billion	0.15	$98.01 million	N/A	N/A

Cintas has higher revenue and earnings than CAPITA.

Risk & Volatility

Cintas has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, CAPITA has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cintas	17.53%	41.21%	19.14%
CAPITA	N/A	N/A	N/A

Institutional & Insider Ownership

63.5% of Cintas shares are held by institutional investors. 15.0% of Cintas shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cintas	2	5	6	1	2.43
CAPITA	0	0	0	0	0.00

Cintas currently has a consensus target price of $224.54, suggesting a potential upside of 10.95%. Given Cintas’ stronger consensus rating and higher possible upside, equities analysts plainly believe Cintas is more favorable than CAPITA.

Summary

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

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other 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, as well as sells uniforms. In addition, the company offers first aid and safety services, and fire protection products and services. It provides 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. The company was founded in 1968 and is based in Cincinnati, Ohio. Cintas Corporation was formerly a subsidiary of Cintas Corporation.

About CAPITA

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.