UniFirst vs Cintas Which Performs Better?

UniFirst Corporation and Cintas Corporation are both well-known companies in the uniform and facility services industry. Both companies provide a range of services including rental, cleaning, and maintenance of workwear and facility supplies. UniFirst and Cintas are publicly traded companies, with their stocks being actively traded on the stock market. Investors interested in this industry may be considering investing in either UniFirst or Cintas stocks. It is important to evaluate the financial performance, market position, and growth potential of each company before making an investment decision.

UniFirst or Cintas?

When comparing UniFirst and Cintas, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between UniFirst and Cintas.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. UniFirst has a dividend yield of 0.81%, while Cintas has a dividend yield of 2.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UniFirst reports a 5-year dividend growth of 27.43% year and a payout ratio of 16.05%. On the other hand, Cintas reports a 5-year dividend growth of 19.52% year and a payout ratio of 33.66%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with UniFirst P/E ratio at 25.05 and Cintas's P/E ratio at 55.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UniFirst P/B ratio is 1.73 while Cintas's P/B ratio is 22.48.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UniFirst has seen a 5-year revenue growth of 0.45%, while Cintas's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UniFirst's ROE at 7.03% and Cintas's ROE at 39.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $201.79 for UniFirst and $223.80 for Cintas. Over the past year, UniFirst's prices ranged from $149.58 to $205.28, with a yearly change of 37.24%. Cintas's prices fluctuated between $132.65 and $227.35, with a yearly change of 71.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.