Head to Head Review: Cintas (CTAS) vs. Oxford Industries (OXM)

Oxford Industries (NYSE: OXM) and Cintas (NASDAQ:CTAS) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

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87.9% of Oxford Industries shares are owned by institutional investors. Comparatively, 66.4% of Cintas shares are owned by institutional investors. 3.3% of Oxford Industries shares are owned by insiders. Comparatively, 18.9% of Cintas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Oxford Industries has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Cintas has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oxford Industries 0 2 6 0 2.75
Cintas 1 6 5 1 2.46

Oxford Industries currently has a consensus price target of $83.00, suggesting a potential upside of 6.18%. Cintas has a consensus price target of $166.10, suggesting a potential downside of 4.75%. Given Oxford Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Oxford Industries is more favorable than Cintas.

Profitability

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

Net Margins Return on Equity Return on Assets
Oxford Industries 5.99% 15.02% 8.98%
Cintas 11.69% 22.86% 8.54%

Dividends

Oxford Industries pays an annual dividend of $1.08 per share and has a dividend yield of 1.4%. Cintas pays an annual dividend of $1.62 per share and has a dividend yield of 0.9%. Oxford Industries pays out 29.5% of its earnings in the form of a dividend. Cintas pays out 35.8% 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. Oxford Industries has increased its dividend for 8 consecutive years and Cintas has increased its dividend for 35 consecutive years. Oxford Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Oxford Industries and Cintas’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oxford Industries $1.09 billion 1.21 $65.09 million $3.66 21.36
Cintas $5.32 billion 3.50 $480.70 million $4.53 38.49

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

Summary

Cintas beats Oxford Industries on 11 of the 18 factors compared between the two stocks.

Oxford Industries Company Profile

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of company owned brands, and licensed and private labels apparel products worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as footwear and children's apparel under the Lilly Pulitzer brand. It also provides branded and private label men's apparel, including tailored clothing, casual pants, and sportswear, as well as apparel under licensed brands, such as the Kenneth Cole, Dockers, Geoffrey Beene, Nick Graham, and Andrew Fezza. In addition, the company licenses Tommy Bahama names for various products, such as men's and women's headwear, watches, outerwear, belts, leather goods, gifts, footwear, handbags, mattresses and box springs, men's socks, luggage, bedding and bath linens, sleepwear, rugs, table top accessories, shampoos, soaps, bath amenities, fragrances, and fabrics, as well as indoor and outdoor furniture, and related products. Oxford Industries, Inc. offers its products through its retail stores and e-commerce sites, department stores, national chains, warehouse clubs, specialty stores, specialty catalogs, and Internet retailers. As of January 28, 2017, the company operated 168 Tommy Bahama stores, including 111 full-price retail stores, 17 retail-restaurant locations, and 40 outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.

Cintas Company Profile

Cintas Corporation provides corporate identity uniforms and related business services primarily in North America, Latin America, Europe, and Asia. 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, and carpet and tile cleaning services, as well as sells uniforms directly. It also offers first aid and safety services, and fire protection products and services. The company offers 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. Cintas Corporation was founded in 1968 and is based in Cincinnati, Ohio.

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