Cintas Corporation (CTAS) vs Rentokil Initial PLC (RTO)

Cintas Corporation and Rentokil Initial PLC are both Specialty Business Services companies. Cintas Corporation is the larger, with a market value of $79.0B against $10.3B — 7.6× the size. Cintas Corporation trades at the lower P/E: 39.0× against 60.5×. Cintas Corporation has the higher net margin (17.8% vs 7.17%) and the higher return on invested capital (22.8% vs 0.00%). Both pay a dividend; Rentokil Initial PLC yields more (1.96% vs 0.82%). Across the 19 metrics below, Cintas Corporation leads on 13 and Rentokil Initial PLC on 6.

Valuation

Metric CTAS RTO Specialty Business Services median
P/E 38.98 60.49 23.86
P/S 6.92 n/m 1.06
P/B 15.37 n/m 2.37
Price to free cash flow 39.34 n/m 16.54
EV/EBITDA 26.34 1.57 11.51
EV/Sales 7.11 0.32 1.51
Earnings yield 2.57% 1.65% 2.14%
Free cash flow yield 2.54% 0.00% 1.55%

Profitability

Metric CTAS RTO Specialty Business Services median
Gross margin 50.99% 0.00% 35.31%
Operating margin 23.36% 0.00% 3.43%
Net margin 17.78% 7.17% 1.67%
Free cash flow margin 17.59% 0.00% 3.28%
Return on equity 41.28% 0.00% 0.58%
Return on assets 20.07% 0.00% 0.33%
Return on invested capital 22.84% 0.00% 0.65%

Growth

Metric CTAS RTO Specialty Business Services median
Revenue growth (TTM) 9.51% — 6.04%
EPS growth (last fiscal year) 11.59% 19.23% —
Revenue growth, 5-year CAGR 9.62% 13.76% 7.66%
Net income growth, 5-year CAGR 12.56% 14.46% 0.00%

Health

Metric CTAS RTO Specialty Business Services median
Debt to equity 0.47 1.01 0.21
Current ratio 1.45 1.16 1.62
Net debt to EBITDA 0.69 2.87 1.16

Dividend

Metric CTAS RTO Specialty Business Services median
Dividend yield 0.82% 1.96% 1.61%
Payout ratio 0.36 — 0.00

Size

Metric CTAS RTO Specialty Business Services median
Market cap 79.02b 10.34b 879.14m

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