Head-To-Head Contrast: Vestis (NYSE:VSTS) & MillerKnoll (NASDAQ:MLKN)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vestis	$2.70 billion	0.68	-$40.22 million	($0.05)	-279.08
MillerKnoll	$3.81 billion	0.37	$91.50 million	$1.41	14.70

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

Institutional & Insider Ownership

97.4% of Vestis shares are held by institutional investors. Comparatively, 87.5% of MillerKnoll shares are held by institutional investors. 15.7% of Vestis shares are held by company insiders. Comparatively, 5.5% of MillerKnoll shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vestis and MillerKnoll’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vestis	-0.20%	7.27%	2.20%
MillerKnoll	2.57%	10.10%	3.39%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
MillerKnoll	0	2	1	1	2.75

Vestis presently has a consensus price target of $12.66, indicating a potential downside of 9.27%. Given Vestis’ higher possible upside, equities analysts plainly believe Vestis is more favorable than MillerKnoll.

Dividends

Vestis pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. MillerKnoll pays an annual dividend of $0.75 per share and has a dividend yield of 3.6%. Vestis pays out -280.0% of its earnings in the form of a dividend. MillerKnoll pays out 53.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Vestis has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, MillerKnoll has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Summary

MillerKnoll beats Vestis on 11 of the 16 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 MillerKnoll

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior furnishings worldwide. It operates through three segments: Americas Contract, International Contract & Specialty, and Global Retail. The company also provides seating products, furniture systems, other freestanding furniture elements, textiles, leather, felt, home furnishings and related services, casegoods, storage products, as well as residential, education, and healthcare furniture solutions. It offers its products under the MillerKnoll, Herman Miller, Herman Miller Circled Symbolic M, Knoll, Maharam, Geiger, Design Within Reach, DWR, HAY, NaughtOne, Nemschoff, Aeron, Mirra, Embody, Setu, Sayl, Cosm, Caper, Eames, Knoll, KnollExtra, Knoll Luxe, KnollStudio, KnollTextiles, Edelman Leather, Spinneybeck Leather, Generation by Knoll, Regeneration by Knoll, MultiGeneration by Knoll, Remix, Holly Hunt, Vladimir Kagan, Muuto, Barcelona, and Womb names. The company offers its products through independent contract furniture dealers, direct contract sales, e-commerce websites, and wholesale and retail stores. Its products are used in institutional, health/science, and residential and other environments, and industrial and educational settings, as well as transportation terminals. The company was formerly known as Herman Miller, Inc. and changed its name to MillerKnoll, Inc. in November 2021. MillerKnoll, Inc. was incorporated in 1905 and is headquartered in Zeeland, Michigan.