Cintas (NASDAQ:CTAS – Get Free Report) and Bright Horizons Family Solutions (NYSE:BFAM – Get Free Report) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
Cintas has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Bright Horizons Family Solutions has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Cintas and Bright Horizons Family Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cintas | 3 | 7 | 5 | 1 | 2.25 |
| Bright Horizons Family Solutions | 1 | 3 | 3 | 0 | 2.29 |
Institutional & Insider Ownership
63.5% of Cintas shares are held by institutional investors. 14.9% of Cintas shares are held by company insiders. Comparatively, 1.2% of Bright Horizons Family Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Cintas and Bright Horizons Family Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cintas | $10.34 billion | 7.16 | $1.81 billion | $4.41 | 41.77 |
| Bright Horizons Family Solutions | $2.69 billion | 2.19 | $140.19 million | $3.48 | 29.94 |
Cintas has higher revenue and earnings than Bright Horizons Family Solutions. Bright Horizons Family Solutions is trading at a lower price-to-earnings ratio than Cintas, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cintas and Bright Horizons Family Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cintas | 17.54% | 40.41% | 19.17% |
| Bright Horizons Family Solutions | 6.98% | 17.07% | 5.99% |
Summary
Cintas beats Bright Horizons Family Solutions on 12 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 Bright Horizons Family Solutions
Bright Horizons Family Solutions Inc. provides early education and childcare, back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services. The Full Service Center-Based Child Care segment offers traditional center-based child care and early education, preschool, and elementary education services. The Back-Up Care segment provides center-based back-up child care, in-home child and adult/elder dependent care, school-age camps, virtual tutoring, and self-sourced reimbursed care services through child care centers, school-age campuses, and in-home caregivers, as well as the back-up care network. The Educational Advisory and Other Services segment offers tuition assistance and student loan repayment program administration, workforce education, and related educational consulting services, as well as college admissions and college financial advisory services. The company was formerly known as Bright Horizons Solutions Corp. and changed its name to Bright Horizons Family Solutions Inc. in July 2012. Bright Horizons Family Solutions Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.
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