Analyzing CorVel (NASDAQ:CRVL) & Cintas (NASDAQ:CTAS)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cintas	$10.34 billion	6.41	$1.81 billion	$3.43	48.31
CorVel	$941.49 million	2.91	$95.17 million	$2.04	26.22

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

Risk and Volatility

Cintas has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, CorVel has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cintas	17.57%	41.47%	19.36%
CorVel	11.23%	30.15%	17.62%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cintas and CorVel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cintas	1	6	6	1	2.50
CorVel	0	1	0	0	2.00

Cintas presently has a consensus price target of $216.92, suggesting a potential upside of 30.90%. Given Cintas’ stronger consensus rating and higher probable upside, research analysts plainly believe Cintas is more favorable than CorVel.

Insider & Institutional Ownership

63.5% of Cintas shares are held by institutional investors. Comparatively, 51.4% of CorVel shares are held by institutional investors. 14.9% of Cintas shares are held by company insiders. Comparatively, 44.6% of CorVel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Cintas beats CorVel on 13 of the 15 factors compared between the two stocks.

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.

About CorVel

CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.