Vestis (VSTS) versus Its Rivals Financial Analysis

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

Institutional & Insider Ownership

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

Risk & Volatility

Vestis has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Vestis’ competitors have a beta of 2.39, suggesting that their average stock price is 139% more volatile than the S&P 500.

Profitability

This table compares Vestis and its competitors’ 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%	-118.76%	-1.30%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Vestis and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
Vestis Competitors	1851	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 11.33%. Given Vestis’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Vestis has less favorable growth aspects than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Vestis	$2.73 billion	-$40.22 million	-265.80
Vestis Competitors	$2.45 billion	$139.90 million	14.64

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

Summary

Vestis competitors beat Vestis on 8 of the 13 factors compared.

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.