Head-To-Head Comparison: Geo Group (NYSE:GEO) and Cintas (NASDAQ:CTAS)

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

Risk & Volatility

Cintas has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Geo Group has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cintas	$11.26 billion	7.03	$2.00 billion	$3.74	52.86
Geo Group	$2.63 billion	1.60	$254.37 million	$2.12	15.07

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

Institutional and Insider Ownership

63.5% of Cintas shares are held by institutional investors. Comparatively, 76.1% of Geo Group shares are held by institutional investors. 14.4% of Cintas shares are held by insiders. Comparatively, 5.0% of Geo Group shares are held 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Cintas and Geo Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cintas	1	5	8	1	2.60
Geo Group	0	1	4	1	3.00

Cintas currently has a consensus price target of $215.23, indicating a potential upside of 8.88%. Geo Group has a consensus price target of $40.00, indicating a potential upside of 25.19%. Given Geo Group’s stronger consensus rating and higher possible upside, analysts clearly believe Geo Group is more favorable than Cintas.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cintas	17.75%	42.05%	19.76%
Geo Group	10.31%	10.42%	4.14%

Summary

Cintas beats Geo Group on 11 of the 14 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 Geo Group

The GEO Group, Inc. (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects. The company was founded in 1984 and is based in Boca Raton, Florida.