Waste Connections (NYSE:WCN – Get Free Report) and Cintas (NASDAQ:CTAS – Get Free Report) are both large-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Valuation and Earnings
This table compares Waste Connections and Cintas”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waste Connections | $9.47 billion | 4.24 | $1.08 billion | $4.15 | 38.49 |
| Cintas | $11.26 billion | 7.16 | $2.00 billion | $3.74 | 53.88 |
Analyst Ratings
This is a breakdown of current ratings and target prices for Waste Connections and Cintas, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waste Connections | 0 | 4 | 14 | 2 | 2.90 |
| Cintas | 1 | 5 | 8 | 1 | 2.60 |
Waste Connections currently has a consensus price target of $200.89, indicating a potential upside of 25.76%. Cintas has a consensus price target of $212.31, indicating a potential upside of 5.36%. Given Waste Connections’ stronger consensus rating and higher possible upside, research analysts clearly believe Waste Connections is more favorable than Cintas.
Dividends
Waste Connections pays an annual dividend of $1.40 per share and has a dividend yield of 0.9%. Cintas pays an annual dividend of $2.08 per share and has a dividend yield of 1.0%. Waste Connections pays out 33.7% of its earnings in the form of a dividend. Cintas pays out 55.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Waste Connections has raised its dividend for 8 consecutive years and Cintas has raised its dividend for 42 consecutive years. Cintas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Waste Connections and Cintas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waste Connections | 10.86% | 17.31% | 6.62% |
| Cintas | 17.75% | 42.05% | 19.76% |
Institutional & Insider Ownership
86.1% of Waste Connections shares are held by institutional investors. Comparatively, 63.5% of Cintas shares are held by institutional investors. 0.3% of Waste Connections shares are held by company insiders. Comparatively, 14.9% of Cintas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Waste Connections has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Cintas has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.
Summary
Cintas beats Waste Connections on 11 of the 18 factors compared between the two stocks.
About Waste Connections
Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.
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.
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