Analyzing Vestis (NYSE:VSTS) and Quad Graphics (NYSE:QUAD)

Vestis (NYSE:VSTS) and Quad Graphics (NYSE:QUAD) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Vestis and Quad Graphics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vestis	-0.20%	7.27%	2.20%
Quad Graphics	1.31%	47.90%	4.61%

Institutional and Insider Ownership

97.4% of Vestis shares are owned by institutional investors. Comparatively, 39.5% of Quad Graphics shares are owned by institutional investors. 15.7% of Vestis shares are owned by insiders. Comparatively, 14.2% of Quad Graphics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Vestis and Quad Graphics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vestis	$2.73 billion	0.69	-$40.22 million	($0.05)	-284.70
Quad Graphics	$2.42 billion	0.20	$27.00 million	$0.63	14.71

Quad Graphics has lower revenue, but higher earnings than Vestis. Vestis is trading at a lower price-to-earnings ratio than Quad Graphics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Vestis has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Quad Graphics has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Vestis and Quad Graphics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
Quad Graphics	0	2	3	0	2.60

Vestis currently has a consensus target price of $12.66, indicating a potential downside of 11.06%. Quad Graphics has a consensus target price of $12.00, indicating a potential upside of 29.45%. Given Quad Graphics’ stronger consensus rating and higher possible upside, analysts plainly believe Quad Graphics is more favorable than Vestis.

Summary

Quad Graphics beats Vestis on 9 of the 14 factors compared between the two stocks.

About Vestis

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.

About Quad Graphics

Quad/Graphics, Inc. provides marketing solutions worldwide. The company operates through United States Print and Related Services, and International segments. It offers printing services, such as retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, and other commercial and specialty printed products; and paper procurement services. The company also provides marketing and other services, including data and analytics, technology solutions, media services, creative and content solutions, managed services, and execution in non-print channels, as well as manufactures ink. It serves blue-chip companies that operate in various industries, and serve businesses and consumers across various industry verticals comprising retail, consumer packaged goods and direct-to-consumer, as well as financial services and health. The company was founded in 1971 and is headquartered in Sussex, Wisconsin.