CTAS vs. LAD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTAS and LAD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CTAS | LAD |
|---|---|---|
| Company Name | Cintas Corporation | Lithia Motors, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Consumer Discretionary |
| GICS Industry | Commercial Services & Supplies | Specialty Retail |
| Market Capitalization | 81.64 billion USD | 8.04 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | August 19, 1983 | December 18, 1996 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CTAS and LAD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | CTAS | LAD |
|---|---|---|
| 5-Day Price Return | -0.64% | -0.74% |
| 13-Week Price Return | -7.64% | -9.40% |
| 26-Week Price Return | -1.42% | 5.67% |
| 52-Week Price Return | -1.31% | 3.51% |
| Month-to-Date Return | -1.29% | -0.74% |
| Year-to-Date Return | 10.90% | -12.24% |
| 10-Day Avg. Volume | 2.12M | 0.30M |
| 3-Month Avg. Volume | 1.68M | 0.29M |
| 3-Month Volatility | 16.88% | 36.76% |
| Beta | 0.99 | 1.20 |
Profitability
Return on Equity (TTM)
CTAS
41.21%
Commercial Services & Supplies Industry
- Max
- 31.93%
- Q3
- 16.86%
- Median
- 10.28%
- Q1
- 6.63%
- Min
- 0.71%
CTAS’s Return on Equity of 41.21% is exceptionally high, placing it well beyond the typical range for the Commercial Services & Supplies industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
LAD
13.20%
Specialty Retail Industry
- Max
- 64.63%
- Q3
- 37.13%
- Median
- 19.07%
- Q1
- 10.79%
- Min
- -16.66%
LAD’s Return on Equity of 13.20% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CTAS
17.53%
Commercial Services & Supplies Industry
- Max
- 16.98%
- Q3
- 9.05%
- Median
- 5.35%
- Q1
- 3.42%
- Min
- -2.31%
CTAS’s Net Profit Margin of 17.53% is exceptionally high, placing it well beyond the typical range for the Commercial Services & Supplies industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
LAD
2.39%
Specialty Retail Industry
- Max
- 21.04%
- Q3
- 10.99%
- Median
- 6.08%
- Q1
- 2.46%
- Min
- -4.37%
Falling into the lower quartile for the Specialty Retail industry, LAD’s Net Profit Margin of 2.39% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
CTAS
22.82%
Commercial Services & Supplies Industry
- Max
- 23.33%
- Q3
- 12.51%
- Median
- 8.33%
- Q1
- 4.45%
- Min
- -2.90%
An Operating Profit Margin of 22.82% places CTAS in the upper quartile for the Commercial Services & Supplies industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
LAD
4.49%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 16.40%
- Median
- 9.28%
- Q1
- 4.05%
- Min
- -10.63%
LAD’s Operating Profit Margin of 4.49% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CTAS | LAD |
|---|---|---|
| Return on Equity (TTM) | 41.21% | 13.20% |
| Return on Assets (TTM) | 19.14% | 3.79% |
| Net Profit Margin (TTM) | 17.53% | 2.39% |
| Operating Profit Margin (TTM) | 22.82% | 4.49% |
| Gross Profit Margin (TTM) | 50.04% | 15.43% |
Financial Strength
Current Ratio (MRQ)
CTAS
2.09
Commercial Services & Supplies Industry
- Max
- 3.73
- Q3
- 2.13
- Median
- 1.31
- Q1
- 0.91
- Min
- 0.59
CTAS’s Current Ratio of 2.09 aligns with the median group of the Commercial Services & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.
LAD
1.22
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.81
- Median
- 1.38
- Q1
- 1.15
- Min
- 0.52
LAD’s Current Ratio of 1.22 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CTAS
0.52
Commercial Services & Supplies Industry
- Max
- 2.24
- Q3
- 1.14
- Median
- 0.76
- Q1
- 0.36
- Min
- 0.00
CTAS’s Debt-to-Equity Ratio of 0.52 is typical for the Commercial Services & Supplies industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
LAD
1.96
Specialty Retail Industry
- Max
- 3.44
- Q3
- 1.57
- Median
- 0.60
- Q1
- 0.22
- Min
- 0.00
LAD’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 1.96. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
CTAS
24.70
Commercial Services & Supplies Industry
- Max
- 24.70
- Q3
- 13.44
- Median
- 9.06
- Q1
- 3.42
- Min
- -10.97
CTAS’s Interest Coverage Ratio of 24.70 is in the upper quartile for the Commercial Services & Supplies industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
LAD
2.89
Specialty Retail Industry
- Max
- 48.12
- Q3
- 39.12
- Median
- 14.13
- Q1
- 3.63
- Min
- -36.00
In the lower quartile for the Specialty Retail industry, LAD’s Interest Coverage Ratio of 2.89 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | CTAS | LAD |
|---|---|---|
| Current Ratio (MRQ) | 2.09 | 1.22 |
| Quick Ratio (MRQ) | 1.71 | 0.29 |
| Debt-to-Equity Ratio (MRQ) | 0.52 | 1.96 |
| Interest Coverage Ratio (TTM) | 24.70 | 2.89 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTAS
0.75%
Commercial Services & Supplies Industry
- Max
- 3.65%
- Q3
- 2.43%
- Median
- 1.58%
- Q1
- 0.74%
- Min
- 0.00%
CTAS’s Dividend Yield of 0.75% is consistent with its peers in the Commercial Services & Supplies industry, providing a dividend return that is standard for its sector.
LAD
0.72%
Specialty Retail Industry
- Max
- 6.48%
- Q3
- 2.84%
- Median
- 1.04%
- Q1
- 0.00%
- Min
- 0.00%
LAD’s Dividend Yield of 0.72% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CTAS
33.75%
Commercial Services & Supplies Industry
- Max
- 137.88%
- Q3
- 73.07%
- Median
- 44.79%
- Q1
- 27.66%
- Min
- 0.00%
CTAS’s Dividend Payout Ratio of 33.75% is within the typical range for the Commercial Services & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
LAD
6.34%
Specialty Retail Industry
- Max
- 192.64%
- Q3
- 79.43%
- Median
- 26.55%
- Q1
- 0.00%
- Min
- 0.00%
LAD’s Dividend Payout Ratio of 6.34% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CTAS | LAD |
|---|---|---|
| Dividend Yield (TTM) | 0.75% | 0.72% |
| Dividend Payout Ratio (TTM) | 33.75% | 6.34% |
Valuation
Price-to-Earnings Ratio (TTM)
CTAS
44.91
Commercial Services & Supplies Industry
- Max
- 57.87
- Q3
- 33.40
- Median
- 23.56
- Q1
- 15.28
- Min
- 6.56
A P/E Ratio of 44.91 places CTAS in the upper quartile for the Commercial Services & Supplies industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
LAD
8.86
Specialty Retail Industry
- Max
- 47.04
- Q3
- 27.74
- Median
- 23.51
- Q1
- 13.77
- Min
- 7.47
In the lower quartile for the Specialty Retail industry, LAD’s P/E Ratio of 8.86 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CTAS
7.87
Commercial Services & Supplies Industry
- Max
- 4.84
- Q3
- 2.58
- Median
- 1.09
- Q1
- 0.62
- Min
- 0.06
With a P/S Ratio of 7.87, CTAS trades at a valuation that eclipses even the highest in the Commercial Services & Supplies industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
LAD
0.21
Specialty Retail Industry
- Max
- 5.77
- Q3
- 2.79
- Median
- 1.21
- Q1
- 0.53
- Min
- 0.09
In the lower quartile for the Specialty Retail industry, LAD’s P/S Ratio of 0.21 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
CTAS
19.50
Commercial Services & Supplies Industry
- Max
- 6.40
- Q3
- 3.97
- Median
- 2.44
- Q1
- 1.60
- Min
- 0.40
At 19.50, CTAS’s P/B Ratio is at an extreme premium to the Commercial Services & Supplies industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
LAD
1.26
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.92
- Median
- 3.98
- Q1
- 1.86
- Min
- 0.55
LAD’s P/B Ratio of 1.26 is in the lower quartile for the Specialty Retail industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | CTAS | LAD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 44.91 | 8.86 |
| Price-to-Sales Ratio (TTM) | 7.87 | 0.21 |
| Price-to-Book Ratio (MRQ) | 19.50 | 1.26 |
| Price-to-Free Cash Flow Ratio (TTM) | 46.32 | 19.22 |