Waste Connections (NYSE:WCN) and Vestis (NYSE:VSTS) Financial Comparison

Vestis (NYSE:VSTS) and Waste Connections (NYSE:WCN) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Vestis and Waste Connections”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	0.70	-$40.22 million	($0.05)	-287.70
Waste Connections	$9.47 billion	5.00	$1.08 billion	$4.47	42.26

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

Profitability

This table compares Vestis and Waste Connections’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vestis	-0.20%	7.27%	2.20%
Waste Connections	11.40%	17.76%	6.69%

Analyst Ratings

This is a breakdown of current ratings and price targets for Vestis and Waste Connections, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
Waste Connections	0	2	16	1	2.95

Vestis currently has a consensus target price of $12.66, indicating a potential downside of 11.99%. Waste Connections has a consensus target price of $203.22, indicating a potential upside of 7.57%. Given Waste Connections’ stronger consensus rating and higher probable upside, analysts plainly believe Waste Connections is more favorable than Vestis.

Volatility and Risk

Vestis has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Waste Connections has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Insider & Institutional Ownership

97.4% of Vestis shares are owned by institutional investors. Comparatively, 86.1% of Waste Connections shares are owned by institutional investors. 15.7% of Vestis shares are owned by insiders. Comparatively, 0.3% of Waste Connections shares are owned 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.

Summary

Waste Connections beats Vestis on 12 of the 15 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 Waste Connections

Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.