Cintas (NASDAQ:CTAS) vs. Rightscorp (OTCMKTS:RIHT) Critical Review

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rightscorp	0	0	0	0	0.00
Cintas	1	7	5	1	2.43

Cintas has a consensus price target of $218.17, suggesting a potential upside of 8.47%. Given Cintas’ stronger consensus rating and higher probable upside, analysts plainly believe Cintas is more favorable than Rightscorp.

Valuation & Earnings

This table compares Rightscorp and Cintas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rightscorp	$290,000.00	6.64	-$410,000.00	N/A	N/A
Cintas	$10.34 billion	7.78	$1.81 billion	$3.43	58.64

Cintas has higher revenue and earnings than Rightscorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rightscorp	N/A	N/A	N/A
Cintas	17.58%	41.07%	19.27%

Risk & Volatility

Rightscorp has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500. Comparatively, Cintas has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of Rightscorp shares are held by institutional investors. Comparatively, 63.5% of Cintas shares are held by institutional investors. 14.9% of Cintas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

About Rightscorp

Rightscorp, Inc. operates as a technology company that has a patent-pending proprietary method for collecting payments from illegal downloaders of copyrighted content through notifications sent to their Internet service providers (ISP’s). The company’s technology system monitors peer-to-peer file sharing networks and sends through email to ISP’s notifications of copyright infringement by the ISPs’ customers with date, time, copyright title, and other specific technology identifiers worldwide. It primarily serves copyright holders. The company was founded in 2010 and is headquartered in Santa Monica, California.

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.