Cintas Corporation (CTAS) versus Exponent (EXPO) Financial Contrast

Cintas Corporation (NASDAQ: CTAS) and Exponent (NASDAQ:EXPO) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Cintas Corporation 9.79% 23.71% 9.70%
Exponent 16.46% 17.21% 11.99%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cintas Corporation $5.32 billion 2.96 $480.70 million $5.08 29.18
Exponent $315.08 million 6.08 $47.48 million $2.05 36.22

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

Volatility & Risk

Cintas Corporation has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Exponent has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Dividends

Cintas Corporation pays an annual dividend of $1.62 per share and has a dividend yield of 1.1%. Exponent pays an annual dividend of $0.84 per share and has a dividend yield of 1.1%. Cintas Corporation pays out 31.9% of its earnings in the form of a dividend. Exponent pays out 41.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cintas Corporation has raised its dividend for 34 consecutive years.

Analyst Recommendations

This is a summary of current recommendations for Cintas Corporation and Exponent, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cintas Corporation 1 7 2 0 2.10
Exponent 0 1 1 0 2.50

Cintas Corporation presently has a consensus price target of $139.88, indicating a potential downside of 5.65%. Exponent has a consensus price target of $79.50, indicating a potential upside of 7.07%. Given Exponent’s stronger consensus rating and higher possible upside, analysts clearly believe Exponent is more favorable than Cintas Corporation.

Insider and Institutional Ownership

66.7% of Cintas Corporation shares are owned by institutional investors. Comparatively, 89.0% of Exponent shares are owned by institutional investors. 18.9% of Cintas Corporation shares are owned by insiders. Comparatively, 2.8% of Exponent shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Cintas Corporation beats Exponent on 9 of the 17 factors compared between the two stocks.

Cintas Corporation 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.

Exponent Company Profile

Exponent, Inc. (Exponent), along with its subsidiaries, is a science and engineering consulting company. Exponent provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project-by-project basis. It operates in two segments: Engineering and Other Scientific, and Environmental and Health. Its Engineering and Other Scientific segment includes biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences and vehicle analysis services. Its Environmental and Health segment includes chemical regulation and food safety; ecological and biological sciences; environmental and earth sciences, and health sciences. Exponent serves clients in automotive, government, health, insurance, manufacturing and technology, among others.

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