HomeServe (OTCMKTS:HMSVY) versus Cintas (NASDAQ:CTAS) Financial Review

Cintas (NASDAQ:CTAS) and HomeServe (OTCMKTS:HMSVY) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

63.5% of Cintas shares are owned by institutional investors. Comparatively, 0.0% of HomeServe shares are owned by institutional investors. 15.1% of Cintas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Cintas and HomeServe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cintas	16.38%	37.82%	17.62%
HomeServe	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Cintas and HomeServe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cintas	2	8	6	0	2.25
HomeServe	0	0	0	0	N/A

Cintas presently has a consensus target price of $742.36, indicating a potential downside of 2.14%. Given Cintas’ higher probable upside, analysts clearly believe Cintas is more favorable than HomeServe.

Valuation and Earnings

This table compares Cintas and HomeServe’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cintas	$9.60 billion	8.04	$1.57 billion	$14.48	52.50
HomeServe	N/A	N/A	N/A	N/A	N/A

Cintas has higher revenue and earnings than HomeServe.

Summary

Cintas beats HomeServe on 8 of the 8 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 HomeServe

HomeServe Plc engages in the provision of home emergency and repair services. It operates through the Membership & Heating, Ventilation and Air Conditioning and Home Experts segments. The company was founded by Richard David Harpin and Jeremy Peter Middleton in 1993 and is headquartered in Walsall, the United Kingdom.