Head to Head Analysis: Vestis (NYSE:VSTS) & Quest Resource (NASDAQ:QRHC)

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

Insider & Institutional Ownership

97.4% of Vestis shares are held by institutional investors. Comparatively, 48.2% of Quest Resource shares are held by institutional investors. 15.7% of Vestis shares are held by insiders. Comparatively, 19.6% of Quest Resource shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Vestis and Quest Resource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestis	4	2	1	1	1.88
Quest Resource	1	2	0	0	1.67

Vestis currently has a consensus price target of $9.50, suggesting a potential downside of 33.26%. Quest Resource has a consensus price target of $2.25, suggesting a potential upside of 73.08%. Given Quest Resource’s higher possible upside, analysts plainly believe Quest Resource is more favorable than Vestis.

Earnings and Valuation

This table compares Vestis and Quest Resource”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	0.69	-$40.22 million	($0.14)	-101.68
Quest Resource	$250.22 million	0.11	-$15.38 million	($0.34)	-3.82

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vestis	-0.63%	5.27%	1.59%
Quest Resource	-3.00%	-12.30%	-3.39%

Risk & Volatility

Vestis has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Summary

Vestis beats Quest Resource on 11 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 Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.