WallStSmart

Cintas Corporation (CTAS)vsLegalZoom.com Inc (LZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cintas Corporation generates 1314% more annual revenue ($11.03B vs $779.71M). CTAS leads profitability with a 17.6% profit margin vs 1.5%. CTAS trades at a lower P/E of 36.9x. CTAS earns a higher WallStSmart Score of 58/100 (C).

CTAS

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 9.0Value: 2.7Quality: 7.5
Piotroski: 6/9Altman Z: 4.29

LZ

Hold

36

out of 100

Grade: F

Growth: 4.7Profit: 4.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: -1.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTASSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$144.61

Current Price

$179.85

$35.24 premium

UndervaluedFair: $144.61Overvalued
LZUndervalued (+28.9%)

Margin of Safety

+28.9%

Fair Value

$10.00

Current Price

$5.74

$4.26 discount

UndervaluedFair: $10.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTAS4 strengths · Avg: 9.3/10
Return on EquityProfitability
40.5%10/10

Every $100 of equity generates 40 in profit

Altman Z-ScoreHealth
4.2910/10

Safe zone — low bankruptcy risk

Market CapQuality
$69.91B9/10

Large-cap with strong market position

Operating MarginProfitability
23.2%8/10

Strong operational efficiency at 23.2%

LZ1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Areas to Watch

CTAS3 concerns · Avg: 3.3/10
P/E RatioValuation
36.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

PEG RatioValuation
2.762/10

Expensive relative to growth rate

LZ4 concerns · Avg: 3.0/10
Market CapQuality
$1.01B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Profit MarginProfitability
1.5%3/10

1.5% margin — thin

Operating MarginProfitability
1.9%3/10

Operating margin of 1.9%

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 17.6% and operating margin at 23.2%.

Bull Case : LZ

The strongest argument for LZ centers on Debt/Equity. Revenue growth of 12.9% demonstrates continued momentum.

Bear Case : CTAS

The primary concerns for CTAS are P/E Ratio, Price/Book, PEG Ratio.

Bear Case : LZ

The primary concerns for LZ are Market Cap, Return on Equity, Profit Margin. A P/E of 98.5x leaves little room for execution misses. Thin 1.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

CTAS profiles as a mature stock while LZ is a value play — different risk/reward profiles.

LZ carries more volatility with a beta of 1.31 — expect wider price swings.

LZ is growing revenue faster at 12.9% — sustainability is the question.

CTAS generates stronger free cash flow (531M), providing more financial flexibility.

Bottom Line

CTAS scores higher overall (58/100 vs 36/100), backed by strong 17.6% margins. LZ offers better value entry with a 28.9% 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.

LegalZoom.com Inc

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company is headquartered in Glendale, California.

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