Vestis (VSTS) vs. The Competition Critical Review

Vestis (NYSE:VSTS) is one of 355 publicly-traded companies in the “Commercial Services & Supplies” industry, but how does it compare to its rivals? We will compare Vestis to similar businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, risk and dividends.

Profitability

This table compares Vestis and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vestis	-0.20%	7.27%	2.20%
Vestis Competitors	-59.03%	-118.79%	-1.31%

Volatility & Risk

Vestis has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Vestis’ rivals have a beta of 2.41, meaning that their average stock price is 141% more volatile than the S&P 500.

Institutional & Insider Ownership

97.4% of Vestis shares are held by institutional investors. Comparatively, 39.2% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 15.7% of Vestis shares are held by insiders. Comparatively, 16.8% of shares of all “Commercial Services & Supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Vestis and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vestis	$2.70 billion	-$40.22 million	-265.80
Vestis Competitors	$2.42 billion	$139.09 million	15.22

Vestis has higher revenue, but lower earnings than its rivals. Vestis is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for Vestis and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
Vestis Competitors	1852	6128	9016	660	2.48

Vestis presently has a consensus target price of $12.66, indicating a potential downside of 4.74%. As a group, “Commercial Services & Supplies” companies have a potential upside of 11.49%. Given Vestis’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Vestis has less favorable growth aspects than its rivals.

Dividends

Vestis pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Vestis pays out -280.0% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 66.1% of their earnings in the form of a dividend.

Summary

Vestis rivals beat Vestis on 9 of the 15 factors compared.

Vestis Company Profile

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries. Vestis Corporation was founded in 1936 and is headquartered in Roswell, Georgia.