Cintas Corporation (CTAS) vs UL Solutions Inc. (ULS)

Cintas Corporation and UL Solutions Inc. are both Specialty Business Services companies. Cintas Corporation is the larger, with a market value of $79.0B against $13.3B — 5.9× the size. UL Solutions Inc. trades at the lower P/E: 26.3× against 39.0×. Cintas Corporation grew revenue faster over the last twelve months: 9.51% against 6.61%. Cintas Corporation has the higher net margin (17.8% vs 16.1%) and the lower return on invested capital (22.8% vs 23.6%). Across the 20 metrics below, UL Solutions Inc. leads on 11 and Cintas Corporation on 9.

Valuation

Metric CTAS ULS Specialty Business Services median
P/E 38.98 26.31 23.86
P/S 6.92 4.24 1.06
P/B 15.37 8.24 2.37
Price to free cash flow 39.34 30.60 16.54
EV/EBITDA 26.34 17.63 11.51
EV/Sales 7.11 4.21 1.51
Earnings yield 2.57% 3.80% 2.14%
Free cash flow yield 2.54% 3.27% 1.55%

Profitability

Metric CTAS ULS Specialty Business Services median
Gross margin 50.99% 50.41% 35.31%
Operating margin 23.36% 17.86% 3.43%
Net margin 17.78% 16.05% 1.67%
Free cash flow margin 17.59% 13.86% 3.28%
Return on equity 41.28% 36.96% 0.58%
Return on assets 20.07% 16.72% 0.33%
Return on invested capital 22.84% 23.62% 0.65%

Growth

Metric CTAS ULS Specialty Business Services median
Revenue growth (TTM) 9.51% 6.61% 6.04%
EPS growth (last fiscal year) 11.59% (1.23%) —
Revenue growth, 5-year CAGR 9.62% — 7.66%
Net income growth, 5-year CAGR 12.56% — 0.00%

Health

Metric CTAS ULS Specialty Business Services median
Debt to equity 0.47 0.19 0.21
Current ratio 1.45 1.42 1.62
Net debt to EBITDA 0.69 0.28 1.16

Dividend

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

Size

Metric CTAS ULS Specialty Business Services median
Market cap 79.02b 13.29b 879.14m

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