Comparing Vestis (VSTS) and The Competition

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

Dividends

Vestis pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Vestis pays out -280.0% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 64.3% of their earnings in the form of a dividend.

Risk & Volatility

Vestis has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Vestis’ peers have a beta of 2.42, indicating that their average share price is 142% more volatile than the S&P 500.

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Vestis and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	3	1	0	1.62
Vestis Competitors	1851	6126	9016	660	2.48

Vestis currently has a consensus price target of $12.66, indicating a potential downside of 3.98%. As a group, “Commercial Services & Supplies” companies have a potential upside of 11.43%. Given Vestis’ peers stronger consensus rating and higher probable upside, analysts clearly believe Vestis has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Vestis and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vestis	$2.70 billion	-$40.22 million	-263.70
Vestis Competitors	$2.42 billion	$139.00 million	16.32

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

Profitability

This table compares Vestis and its peers’ 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	-59.02%	-118.76%	-1.30%

Summary

Vestis peers beat Vestis on 9 of the 15 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.