WallStSmart

Cintas Corporation (CTAS)vsDolby Laboratories (DLB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cintas Corporation generates 754% more annual revenue ($11.56B vs $1.35B). CTAS leads profitability with a 17.8% profit margin vs 16.7%. DLB appears more attractively valued with a PEG of 2.08. CTAS earns a higher WallStSmart Score of 62/100 (C+).

CTAS

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 2.7Quality: 7.0
Piotroski: 6/9Altman Z: 4.33

DLB

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 6.5Value: 6.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTASSignificantly Overvalued (-30.3%)

Margin of Safety

-30.3%

Fair Value

$153.72

Current Price

$212.81

$59.09 premium

UndervaluedFair: $153.72Overvalued
DLBUndervalued (+34.8%)

Margin of Safety

+34.8%

Fair Value

$106.02

Current Price

$61.67

$44.35 discount

UndervaluedFair: $106.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTAS4 strengths · Avg: 9.3/10
Return on EquityProfitability
39.6%10/10

Every $100 of equity generates 40 in profit

Altman Z-ScoreHealth
4.3310/10

Safe zone — low bankruptcy risk

Market CapQuality
$84.30B9/10

Large-cap with strong market position

Operating MarginProfitability
24.1%8/10

Strong operational efficiency at 24.1%

DLB3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.8510/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

CTAS3 concerns · Avg: 2.7/10
Price/BookValuation
16.3x4/10

Trading at 16.3x book value

PEG RatioValuation
3.142/10

Expensive relative to growth rate

P/E RatioValuation
41.9x2/10

Premium valuation, high expectations priced in

DLB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
25.5x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : CTAS

The strongest argument for CTAS centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 17.8% and operating margin at 24.1%. Revenue growth of 10.9% demonstrates continued momentum.

Bull Case : DLB

The strongest argument for DLB centers on Debt/Equity, Altman Z-Score, Price/Book. Profitability is solid with margins at 16.7% and operating margin at 12.6%.

Bear Case : CTAS

The primary concerns for CTAS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 41.9x leaves little room for execution misses.

Bear Case : DLB

The primary concerns for DLB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

CTAS profiles as a mature stock while DLB is a declining play — different risk/reward profiles.

CTAS carries more volatility with a beta of 0.92 — expect wider price swings.

CTAS is growing revenue faster at 10.9% — sustainability is the question.

CTAS generates stronger free cash flow (465M), providing more financial flexibility.

Bottom Line

CTAS scores higher overall (62/100 vs 44/100), backed by strong 17.8% margins and 10.9% revenue growth. DLB offers better value entry with a 34.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cintas Corporation

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Cintas Corporation is an American corporation headquartered in Cincinnati, Ohio, which provides a range of products and services to businesses including uniforms, mats, mops, cleaning and restroom supplies, first aid and safety products, fire extinguishers and testing, and safety courses.

Dolby Laboratories

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Dolby Laboratories, Inc. creates imaging and audio technologies that transform entertainment and communications in the theater, home, work, and mobile devices. The company is headquartered in San Francisco, California.

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