G&K Services (NASDAQ: GK) is one of 98 public companies in the “Business Support Services” industry, but how does it compare to its rivals? We will compare G&K Services to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for G&K Services and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
G&K Services 0 1 0 0 2.00
G&K Services Competitors 742 2106 2691 84 2.38

As a group, “Business Support Services” companies have a potential downside of 2.13%. Given G&K Services’ rivals stronger consensus rating and higher probable upside, analysts plainly believe G&K Services has less favorable growth aspects than its rivals.

Risk and Volatility

G&K Services has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, G&K Services’ rivals have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Profitability

This table compares G&K Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
G&K Services 3.79% 9.12% 4.03%
G&K Services Competitors -128.97% -181.08% -5.89%

Valuation & Earnings

This table compares G&K Services and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
G&K Services N/A N/A 34.21
G&K Services Competitors $1.12 billion $179.78 million 21.35

G&K Services’ rivals have higher revenue and earnings than G&K Services. G&K Services is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

G&K Services pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. G&K Services pays out 54.7% of its earnings in the form of a dividend. As a group, “Business Support Services” companies pay a dividend yield of 1.1% and pay out 26.9% of their earnings in the form of a dividend.

Insider & Institutional Ownership

88.6% of G&K Services shares are owned by institutional investors. Comparatively, 62.9% of shares of all “Business Support Services” companies are owned by institutional investors. 3.7% of G&K Services shares are owned by company insiders. Comparatively, 11.9% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

G&K Services rivals beat G&K Services on 8 of the 13 factors compared.

About G&K Services

G&K Services, Inc. is a service-focused provider of branded uniform and facility services programs. The Company provides a range of workwear and protective safety apparel through rental and direct purchase programs. The Company also supplies various facility products and services, including floor mats, towels, mops, restroom hygiene products, and first aid supplies. It also manufactures certain work apparel garments that are used to support its garment rental and direct purchase programs. It operates in two segments: United States (includes the Dominican Republic) and Canada. The Company operated from approximately 160 locations, as of July 2, 2016. The Company serves a diverse base of customer locations in various industries, including automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, retail, restaurants, construction and trades, hospitality, government, healthcare and others.

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