Critical Review: Vestis (VSTS) versus Its Competitors

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 related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, dividends, risk and institutional ownership.

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%

Risk and Volatility

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

Analyst Ratings

This is a summary of recent ratings for Vestis and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
Vestis Competitors	1853	6129	9017	660	2.48

Vestis presently has a consensus target price of $12.66, suggesting a potential downside of 7.17%. As a group, “Commercial Services & Supplies” companies have a potential upside of 12.02%. Given Vestis’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Vestis has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

97.4% of Vestis shares are owned by institutional investors. Comparatively, 39.6% of shares of all “Commercial Services & Supplies” companies are owned by institutional investors. 15.7% of Vestis shares are owned by insiders. Comparatively, 16.7% of shares of all “Commercial Services & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

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	$2.73 billion	-$40.22 million	-272.76
Vestis Competitors	$2.43 billion	$139.09 million	15.28

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.

Summary

Vestis rivals beat Vestis on 8 of the 13 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.