Critical Contrast: Cintas (CTAS) vs. Vantiv (VNTV)

Cintas (NASDAQ: CTAS) and Vantiv (NYSE:VNTV) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Valuation & Earnings

This table compares Cintas and Vantiv’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cintas $5.32 billion 3.21 $480.70 million $4.47 35.90
Vantiv $3.58 billion 3.85 $213.20 million $1.44 53.89

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

Dividends

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

Risk and Volatility

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

Institutional & Insider Ownership

66.6% of Cintas shares are held by institutional investors. 18.9% of Cintas shares are held by company insiders. Comparatively, 1.3% of Vantiv 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Cintas 9.23% 23.23% 8.94%
Vantiv 6.07% 41.19% 7.92%

Analyst Ratings

This is a summary of recent recommendations and price targets for Cintas and Vantiv, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cintas 1 7 5 0 2.31
Vantiv 0 6 22 1 2.83

Cintas presently has a consensus target price of $151.10, suggesting a potential downside of 5.83%. Vantiv has a consensus target price of $80.08, suggesting a potential upside of 3.19%. Given Vantiv’s stronger consensus rating and higher probable upside, analysts plainly believe Vantiv is more favorable than Cintas.

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.

Vantiv Company Profile

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

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