Contrasting Cintas (NASDAQ:CTAS) and BGSF (NYSE:BGSF)

BGSF (NYSE:BGSF) and Cintas (NASDAQ:CTAS) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BGSF and Cintas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	1	1	2.50
Cintas	2	4	6	1	2.46

BGSF currently has a consensus price target of $9.00, indicating a potential upside of 167.06%. Cintas has a consensus price target of $222.09, indicating a potential upside of 21.18%. Given BGSF’s stronger consensus rating and higher probable upside, analysts clearly believe BGSF is more favorable than Cintas.

Risk & Volatility

BGSF has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Cintas has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BGSF	-2.81%	-9.06%	-4.84%
Cintas	17.54%	40.41%	19.17%

Earnings and Valuation

This table compares BGSF and Cintas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$272.50 million	0.14	-$3.34 million	($0.58)	-5.81
Cintas	$10.56 billion	6.98	$1.81 billion	$4.41	41.56

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

Institutional & Insider Ownership

37.2% of BGSF shares are held by institutional investors. Comparatively, 63.5% of Cintas shares are held by institutional investors. 8.0% of BGSF shares are held by company insiders. Comparatively, 14.9% of Cintas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cintas beats BGSF on 11 of the 14 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

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.