Analyzing VCI Global (NASDAQ:VCIG) and Cintas (NASDAQ:CTAS)

Cintas (NASDAQ:CTAS) and VCI Global (NASDAQ:VCIG) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cintas	17.58%	41.07%	19.27%
VCI Global	N/A	N/A	N/A

Valuation and Earnings

This table compares Cintas and VCI Global”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	7.68	$1.81 billion	$3.43	57.89
VCI Global	$27.83 million	0.06	$7.87 million	N/A	N/A

Cintas has higher revenue and earnings than VCI Global.

Insider & Institutional Ownership

63.5% of Cintas shares are held by institutional investors. Comparatively, 0.2% of VCI Global shares are held by institutional investors. 14.9% of Cintas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cintas and VCI Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cintas	1	7	5	1	2.43
VCI Global	1	0	0	0	1.00

Cintas presently has a consensus target price of $218.17, indicating a potential upside of 9.88%. Given Cintas’ stronger consensus rating and higher possible upside, equities analysts clearly believe Cintas is more favorable than VCI Global.

Volatility and Risk

Cintas has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, VCI Global has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Summary

Cintas beats VCI Global on 12 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 VCI Global

VCI Global Limited, together with its subsidiaries, provides business and technology consulting services in Malaysia. The company offers business strategy consultancy services, including listing solutions, investors relations, and boardroom strategies consultancy. It also provides technology consultancy services and solutions, such as digital development, fintech solution, and software solutions. In addition, the company engages in corporate and business advisory services in corporate finance, corporate structuring and restructuring, equity investment, and merger and acquisition; listings on recognized stock exchanges; fintech advisory; technology development; and computer software programming. Further, it is involved in provision of artificial intelligence; image processing; communication; networking and process control software services; money lending services; education and training services; real estate management consultancy services; and leasing and operational management of resort properties. The company serves its products to small-medium enterprises and government-linked agencies, as well as to publicly traded conglomerates across various industries. VCI Global Limited was founded in 2013 and is headquartered in Kuala Lumpur, Malaysia.