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 | 74.87 billion USD | 7.33 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 | -1.89% | -2.21% |
| 13-Week Price Return | -15.23% | -6.70% |
| 26-Week Price Return | -17.86% | -10.75% |
| 52-Week Price Return | -15.95% | -22.44% |
| Month-to-Date Return | -0.04% | -8.47% |
| Year-to-Date Return | 0.27% | -19.57% |
| 10-Day Avg. Volume | 2.54M | 0.31M |
| 3-Month Avg. Volume | 2.02M | 0.33M |
| 3-Month Volatility | 18.12% | 32.56% |
| Beta | 0.96 | 1.22 |
Profitability
Return on Equity (TTM)
CTAS
40.41%
Commercial Services & Supplies Industry
- Max
- 31.86%
- Q3
- 17.95%
- Median
- 10.20%
- Q1
- 6.64%
- Min
- -9.69%
CTAS’s Return on Equity of 40.41% 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
13.23%
Specialty Retail Industry
- Max
- 68.49%
- Q3
- 37.12%
- Median
- 19.64%
- Q1
- 12.17%
- Min
- -17.19%
LAD’s Return on Equity of 13.23% 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
17.54%
Commercial Services & Supplies Industry
- Max
- 17.54%
- Q3
- 10.35%
- Median
- 5.85%
- Q1
- 3.23%
- Min
- -2.31%
A Net Profit Margin of 17.54% places CTAS in the upper quartile for the Commercial Services & Supplies industry, signifying strong profitability and more effective cost management than most of its peers.
LAD
2.39%
Specialty Retail Industry
- Max
- 21.04%
- Q3
- 11.79%
- Median
- 6.37%
- Q1
- 2.40%
- 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
22.89%
Commercial Services & Supplies Industry
- Max
- 25.57%
- Q3
- 15.63%
- Median
- 8.06%
- Q1
- 4.76%
- Min
- -7.48%
An Operating Profit Margin of 22.89% 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
4.43%
Specialty Retail Industry
- Max
- 32.33%
- Q3
- 16.59%
- Median
- 9.34%
- Q1
- 3.86%
- Min
- -10.53%
LAD’s Operating Profit Margin of 4.43% 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) | 40.41% | 13.23% |
| Return on Assets (TTM) | 19.17% | 3.77% |
| Net Profit Margin (TTM) | 17.54% | 2.39% |
| Operating Profit Margin (TTM) | 22.89% | 4.43% |
| Gross Profit Margin (TTM) | 50.10% | 15.38% |
Financial Strength
Current Ratio (MRQ)
CTAS
2.24
Commercial Services & Supplies Industry
- Max
- 3.94
- Q3
- 2.24
- Median
- 1.28
- Q1
- 0.91
- Min
- 0.58
CTAS’s Current Ratio of 2.24 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
1.21
Specialty Retail Industry
- Max
- 2.77
- Q3
- 1.86
- Median
- 1.40
- Q1
- 1.13
- Min
- 0.73
LAD’s Current Ratio of 1.21 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
0.51
Commercial Services & Supplies Industry
- Max
- 2.24
- Q3
- 1.11
- Median
- 0.73
- Q1
- 0.30
- Min
- 0.00
CTAS’s Debt-to-Equity Ratio of 0.51 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
2.09
Specialty Retail Industry
- Max
- 3.76
- Q3
- 1.71
- Median
- 0.58
- Q1
- 0.21
- Min
- 0.00
LAD’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 2.09. 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
- 24.47
- Median
- 9.83
- Q1
- 3.74
- 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
- 96.69
- Q3
- 45.12
- Median
- 14.13
- Q1
- 3.66
- 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) | 2.24 | 1.21 |
| Quick Ratio (MRQ) | 1.88 | 0.30 |
| Debt-to-Equity Ratio (MRQ) | 0.51 | 2.09 |
| Interest Coverage Ratio (TTM) | 24.70 | 2.89 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTAS
0.85%
Commercial Services & Supplies Industry
- Max
- 4.46%
- Q3
- 2.38%
- Median
- 1.70%
- Q1
- 0.89%
- Min
- 0.00%
CTAS’s Dividend Yield of 0.85% is in the lower quartile for the Commercial Services & Supplies industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
LAD
0.79%
Specialty Retail Industry
- Max
- 6.98%
- Q3
- 3.28%
- Median
- 1.12%
- Q1
- 0.00%
- Min
- 0.00%
LAD’s Dividend Yield of 0.79% 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
34.09%
Commercial Services & Supplies Industry
- Max
- 137.88%
- Q3
- 72.93%
- Median
- 50.54%
- Q1
- 29.39%
- Min
- 0.00%
CTAS’s Dividend Payout Ratio of 34.09% is within the typical range for the Commercial Services & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
LAD
6.25%
Specialty Retail Industry
- Max
- 192.64%
- Q3
- 82.72%
- Median
- 26.67%
- Q1
- 0.00%
- Min
- 0.00%
LAD’s Dividend Payout Ratio of 6.25% 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) | 0.85% | 0.79% |
| Dividend Payout Ratio (TTM) | 34.09% | 6.25% |
Valuation
Price-to-Earnings Ratio (TTM)
CTAS
40.33
Commercial Services & Supplies Industry
- Max
- 57.06
- Q3
- 35.30
- Median
- 21.86
- Q1
- 16.24
- Min
- 6.18
A P/E Ratio of 40.33 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
7.96
Specialty Retail Industry
- Max
- 41.01
- Q3
- 27.38
- Median
- 22.35
- Q1
- 14.15
- Min
- 6.07
In the lower quartile for the Specialty Retail industry, LAD’s P/E Ratio of 7.96 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CTAS
7.07
Commercial Services & Supplies Industry
- Max
- 6.55
- Q3
- 3.15
- Median
- 1.07
- Q1
- 0.68
- Min
- 0.06
With a P/S Ratio of 7.07, 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
0.19
Specialty Retail Industry
- Max
- 5.30
- Q3
- 2.51
- Median
- 1.30
- Q1
- 0.50
- Min
- 0.09
In the lower quartile for the Specialty Retail industry, LAD’s P/S Ratio of 0.19 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
17.80
Commercial Services & Supplies Industry
- Max
- 6.18
- Q3
- 4.19
- Median
- 2.44
- Q1
- 1.61
- Min
- 0.40
At 17.80, 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
1.20
Specialty Retail Industry
- Max
- 16.26
- Q3
- 9.05
- Median
- 4.10
- Q1
- 1.91
- Min
- 0.55
LAD’s P/B Ratio of 1.20 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) | 40.33 | 7.96 |
| Price-to-Sales Ratio (TTM) | 7.07 | 0.19 |
| Price-to-Book Ratio (MRQ) | 17.80 | 1.20 |
| Price-to-Free Cash Flow Ratio (TTM) | 44.04 | 17.43 |