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 peers? We will compare Vestis to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Vestis	$2.70 billion	-$40.22 million	-262.06
Vestis Competitors	$2.42 billion	$139.09 million	15.03

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.

Insider and Institutional 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, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices 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	1853	6136	9017	660	2.48

Vestis presently has a consensus price target of $12.66, suggesting a potential downside of 3.38%. As a group, “Commercial Services & Supplies” companies have a potential upside of 12.51%. Given Vestis’ peers stronger consensus rating and higher probable upside, analysts clearly believe Vestis has less favorable growth aspects than its peers.

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	-59.04%	-118.80%	-1.31%

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 66.1% of their earnings in the form of a dividend.

Volatility & Risk

Vestis has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Vestis’ peers have a beta of 2.81, suggesting that their average share price is 181% more volatile than the S&P 500.

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.