Cintas (NASDAQ:CTAS – Get Free Report) and CorVel (NASDAQ:CRVL – Get Free Report) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Earnings & Valuation
This table compares Cintas and CorVel”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cintas | $10.34 billion | 6.74 | $1.81 billion | $3.54 | 49.25 |
| CorVel | $895.59 million | 3.11 | $95.17 million | $2.04 | 26.70 |
Insider & Institutional Ownership
63.5% of Cintas shares are held by institutional investors. Comparatively, 51.4% of CorVel shares are held by institutional investors. 14.9% of Cintas shares are held by insiders. Comparatively, 44.6% of CorVel shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Cintas and CorVel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cintas | 17.57% | 41.47% | 19.36% |
| CorVel | 11.23% | 30.15% | 17.62% |
Analyst Ratings
This is a summary of current ratings and target prices for Cintas and CorVel, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cintas | 1 | 7 | 5 | 1 | 2.43 |
| CorVel | 0 | 1 | 0 | 0 | 2.00 |
Cintas presently has a consensus target price of $215.17, suggesting a potential upside of 23.42%. Given Cintas’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Cintas is more favorable than CorVel.
Volatility and Risk
Cintas has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, CorVel has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Summary
Cintas beats CorVel on 13 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 CorVel
CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.
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