CTAS vs. PH, EMR, ITW, GWW, JCI, ABBNY, FERG, IR, XYL, and ROK
Should you be buying Cintas stock or one of its competitors? The main competitors of Cintas include Parker-Hannifin (PH), Emerson Electric (EMR), Illinois Tool Works (ITW), W.W. Grainger (GWW), Johnson Controls International (JCI), ABB (ABBNY), Ferguson (FERG), Ingersoll Rand (IR), Xylem (XYL), and Rockwell Automation (ROK). These companies are all part of the "industrial products" sector.
Parker-Hannifin (NYSE:PH) and Cintas (NASDAQ:CTAS) are both large-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, media sentiment, risk, profitability, dividends, community ranking and analyst recommendations.
Parker-Hannifin pays an annual dividend of $5.92 per share and has a dividend yield of 1.1%. Cintas pays an annual dividend of $5.40 per share and has a dividend yield of 0.8%. Parker-Hannifin pays out 29.3% of its earnings in the form of a dividend. Cintas pays out 37.3% 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 has increased its dividend for 68 consecutive years and Cintas has increased its dividend for 41 consecutive years. Parker-Hannifin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
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.
Parker-Hannifin has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Cintas has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Parker-Hannifin presently has a consensus target price of $515.38, indicating a potential downside of 6.91%. Cintas has a consensus target price of $661.21, indicating a potential downside of 0.75%. Given Parker-Hannifin's higher possible upside, analysts plainly believe Cintas is more favorable than Parker-Hannifin.
Cintas has a net margin of 15.98% compared to Cintas' net margin of 13.28%. Parker-Hannifin's return on equity of 37.19% beat Cintas' return on equity.
82.4% of Parker-Hannifin shares are owned by institutional investors. Comparatively, 63.5% of Cintas shares are owned by institutional investors. 1.0% of Parker-Hannifin shares are owned by company insiders. Comparatively, 15.1% of Cintas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
In the previous week, Parker-Hannifin had 7 more articles in the media than Cintas. MarketBeat recorded 14 mentions for Parker-Hannifin and 7 mentions for Cintas. Parker-Hannifin's average media sentiment score of 1.22 beat Cintas' score of 1.08 indicating that Cintas is being referred to more favorably in the news media.
Parker-Hannifin received 158 more outperform votes than Cintas when rated by MarketBeat users. Likewise, 62.95% of users gave Parker-Hannifin an outperform vote while only 60.16% of users gave Cintas an outperform vote.
Summary
Parker-Hannifin beats Cintas on 13 of the 21 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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