Checkpoint Systems (NYSE: CKP) and Cintas (NASDAQ:CTAS) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Cintas pays an annual dividend of $1.62 per share and has a dividend yield of 0.9%. Checkpoint Systems does not pay a dividend. Cintas pays out 32.3% of its earnings in the form of a dividend. Cintas has raised its dividend for 35 consecutive years.
This table compares Checkpoint Systems and Cintas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Checkpoint Systems has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Cintas has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
This is a summary of current recommendations for Checkpoint Systems and Cintas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cintas has a consensus target price of $153.50, indicating a potential downside of 11.58%. Given Cintas’ higher possible upside, analysts clearly believe Cintas is more favorable than Checkpoint Systems.
Institutional & Insider Ownership
66.6% of Cintas shares are owned by institutional investors. 18.9% 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.
Earnings and Valuation
This table compares Checkpoint Systems and Cintas’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cintas||$5.32 billion||3.47||$480.70 million||$5.02||34.58|
Cintas has higher revenue and earnings than Checkpoint Systems. Checkpoint Systems is trading at a lower price-to-earnings ratio than Cintas, indicating that it is currently the more affordable of the two stocks.
Cintas beats Checkpoint Systems on 12 of the 14 factors compared between the two stocks.
About Checkpoint Systems
Checkpoint Systems, Inc. is a United States-based supplier of merchandise availability solutions for the retail industry. The Company provides end-to-end solutions enabling retailers to achieve real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft. It offers merchandise availability solutions, such as shrink management, including antennas, labels and tags, source tagging, deactivation, remote service and support, and Alpha High Theft Solutions, and merchandise visibility solutions, including inventory management, asset tracking and OneTag Program. OneTag Program allows retailers to obtain the benefits of inventory visibility and loss prevention with a single radio frequency identification tag. It offers apparel labelling solutions, such as Trim, including woven labels, printed fabric labels and specialty trim services, and brand merchandising, including printed items and self-adhesive. It serves markets, such as electronics and grocery.
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.
Receive News & Ratings for Checkpoint Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Checkpoint Systems and related companies with MarketBeat.com's FREE daily email newsletter.