Cintas (NASDAQ:CTAS) versus RB Global (NYSE:RBA) Critical Survey

RB Global (NYSE:RBA) and Cintas (NASDAQ:CTAS) are both large-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Valuation & Earnings

This table compares RB Global and Cintas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RB Global	$4.59 billion	3.28	$423.10 million	$2.33	34.88
Cintas	$11.26 billion	7.11	$2.00 billion	$3.74	53.49

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

Dividends

RB Global pays an annual dividend of $1.32 per share and has a dividend yield of 1.6%. Cintas pays an annual dividend of $2.08 per share and has a dividend yield of 1.0%. RB Global pays out 56.7% of its earnings in the form of a dividend. Cintas pays out 55.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RB Global has increased its dividend for 20 consecutive years and Cintas has increased its dividend for 42 consecutive years.

Insider and Institutional Ownership

95.4% of RB Global shares are owned by institutional investors. Comparatively, 63.5% of Cintas shares are owned by institutional investors. 0.6% of RB Global shares are owned by company insiders. Comparatively, 14.9% of Cintas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

RB Global has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Cintas has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for RB Global and Cintas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RB Global	0	2	7	1	2.90
Cintas	1	6	7	1	2.53

RB Global presently has a consensus target price of $128.00, suggesting a potential upside of 57.52%. Cintas has a consensus target price of $212.31, suggesting a potential upside of 6.13%. Given RB Global’s stronger consensus rating and higher probable upside, research analysts clearly believe RB Global is more favorable than Cintas.

Profitability

This table compares RB Global and Cintas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RB Global	9.99%	12.37%	5.58%
Cintas	17.75%	42.05%	19.76%

Summary

Cintas beats RB Global on 12 of the 16 factors compared between the two stocks.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.

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.