Vestis (NYSE:VSTS) versus ACV Auctions (NYSE:ACVA) Head-To-Head Review

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

Volatility & Risk

Vestis has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Profitability

This table compares Vestis and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vestis	-0.20%	7.27%	2.20%
ACV Auctions	-7.88%	-6.01%	-2.22%

Analyst Ratings

This is a breakdown of recent recommendations for Vestis and ACV Auctions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
ACV Auctions	4	7	5	0	2.06

Vestis presently has a consensus price target of $12.66, indicating a potential downside of 13.57%. ACV Auctions has a consensus price target of $9.70, indicating a potential downside of 7.62%. Given ACV Auctions’ stronger consensus rating and higher possible upside, analysts plainly believe ACV Auctions is more favorable than Vestis.

Valuation & Earnings

This table compares Vestis and ACV Auctions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vestis	$2.73 billion	0.71	-$40.22 million	($0.05)	-292.96
ACV Auctions	$801.34 million	2.23	-$66.14 million	($0.36)	-29.17

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

Insider & Institutional Ownership

97.4% of Vestis shares are owned by institutional investors. Comparatively, 88.6% of ACV Auctions shares are owned by institutional investors. 15.7% of Vestis shares are owned by insiders. Comparatively, 4.4% of ACV Auctions 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.

Summary

Vestis beats ACV Auctions on 8 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 ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.