Contrasting Cintas (NASDAQ:CTAS) & Casella Waste Systems (NASDAQ:CWST)

Cintas (NASDAQ:CTAS) and Casella Waste Systems (NASDAQ:CWST) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Institutional & Insider Ownership

63.5% of Cintas shares are owned by institutional investors. Comparatively, 99.5% of Casella Waste Systems shares are owned by institutional investors. 14.4% of Cintas shares are owned by insiders. Comparatively, 3.8% of Casella Waste Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cintas and Casella Waste Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cintas	$11.56 billion	7.38	$2.01 billion	$5.07	42.37
Casella Waste Systems	$1.96 billion	3.05	$5.73 million	$0.09	1,041.22

Cintas has higher revenue and earnings than Casella Waste Systems. Cintas is trading at a lower price-to-earnings ratio than Casella Waste Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Cintas and Casella Waste Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cintas	1	6	10	0	2.53
Casella Waste Systems	1	3	4	1	2.56

Cintas presently has a consensus price target of $218.50, indicating a potential upside of 1.72%. Casella Waste Systems has a consensus price target of $105.83, indicating a potential upside of 12.94%. Given Casella Waste Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Casella Waste Systems is more favorable than Cintas.

Profitability

This table compares Cintas and Casella Waste Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cintas	N/A	N/A	N/A
Casella Waste Systems	N/A	N/A	N/A

Risk and Volatility

Cintas has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Casella Waste Systems has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Summary

Cintas beats Casella Waste Systems on 7 of the 12 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 Casella Waste Systems

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the United States. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company provides non-hazardous solid waste services, including collections, transfer stations, recycling, and disposal operations. In addition, it markets materials, including fibers, corrugated cardboard, newsprint, plastics, glass, ferrous, and aluminum metals. Casella Waste Systems, Inc. was founded in 1975 and is headquartered in Rutland, Vermont.