Cintas (NASDAQ:CTAS – Get Free Report) and Geo Group (NYSE:GEO – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Earnings & Valuation
This table compares Cintas and Geo Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cintas | $11.26 billion | 6.94 | $2.00 billion | $5.07 | 38.47 |
| Geo Group | $2.63 billion | 1.52 | $254.37 million | $2.12 | 14.37 |
Institutional and Insider Ownership
63.5% of Cintas shares are owned by institutional investors. Comparatively, 76.1% of Geo Group shares are owned by institutional investors. 14.4% of Cintas shares are owned by insiders. Comparatively, 5.0% of Geo Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Cintas and Geo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cintas | 17.82% | 42.57% | 20.07% |
| Geo Group | 10.31% | 10.42% | 4.14% |
Volatility & Risk
Cintas has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Geo Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Cintas and Geo Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cintas | 1 | 5 | 8 | 0 | 2.50 |
| Geo Group | 0 | 1 | 4 | 1 | 3.00 |
Cintas presently has a consensus price target of $216.08, indicating a potential upside of 10.77%. Geo Group has a consensus price target of $40.00, indicating a potential upside of 31.29%. Given Geo Group’s stronger consensus rating and higher probable upside, analysts plainly believe Geo Group is more favorable than Cintas.
Summary
Cintas beats Geo Group on 11 of the 15 factors compared between the two stocks.
About Cintas
Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. In addition, the company offers first aid and safety services, and fire protection products and services. It provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. The company was founded in 1968 and is based in Cincinnati, Ohio. Cintas Corporation was formerly a subsidiary of Cintas Corporation.
About Geo Group
The GEO Group, Inc. (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects. The company was founded in 1984 and is based in Boca Raton, Florida.
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