CTAS vs. PH, ITW, EMR, JCI, GWW, FERG, ABBNY, XYL, DE, and ROK
Should you be buying Cintas stock or one of its competitors? The main competitors of Cintas include Parker-Hannifin (PH), Illinois Tool Works (ITW), Emerson Electric (EMR), Johnson Controls International (JCI), W.W. Grainger (GWW), Ferguson (FERG), ABB (ABBNY), Xylem (XYL), Deere & Company (DE), and Rockwell Automation (ROK). These companies are all part of the "industrial products" sector.
Cintas (NASDAQ:CTAS) and Parker-Hannifin (NYSE:PH) are both large-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, media sentiment, analyst recommendations, earnings, institutional ownership and community ranking.
In the previous week, Parker-Hannifin had 12 more articles in the media than Cintas. MarketBeat recorded 15 mentions for Parker-Hannifin and 3 mentions for Cintas. Parker-Hannifin's average media sentiment score of 0.97 beat Cintas' score of 0.26 indicating that Parker-Hannifin is being referred to more favorably in the news media.
Parker-Hannifin received 164 more outperform votes than Cintas when rated by MarketBeat users. Likewise, 63.09% of users gave Parker-Hannifin an outperform vote while only 60.16% of users gave Cintas an outperform vote.
Cintas has a net margin of 15.98% compared to Parker-Hannifin's net margin of 13.95%. Cintas' return on equity of 37.19% beat Parker-Hannifin's return on equity.
Parker-Hannifin has higher revenue and earnings than Cintas. Parker-Hannifin is trading at a lower price-to-earnings ratio than Cintas, indicating that it is currently the more affordable of the two stocks.
Cintas pays an annual dividend of $5.40 per share and has a dividend yield of 0.8%. Parker-Hannifin pays an annual dividend of $6.52 per share and has a dividend yield of 1.2%. Cintas pays out 37.3% of its earnings in the form of a dividend. Parker-Hannifin pays out 30.7% 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. Parker-Hannifin is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cintas has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Parker-Hannifin has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.
Cintas currently has a consensus target price of $661.21, suggesting a potential downside of 5.78%. Parker-Hannifin has a consensus target price of $560.20, suggesting a potential upside of 2.59%. Given Parker-Hannifin's stronger consensus rating and higher probable upside, analysts clearly believe Parker-Hannifin is more favorable than Cintas.
63.5% of Cintas shares are owned by institutional investors. Comparatively, 82.4% of Parker-Hannifin shares are owned by institutional investors. 15.1% of Cintas shares are owned by insiders. Comparatively, 1.0% of Parker-Hannifin shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Parker-Hannifin beats Cintas on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CTAS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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