ACV Auctions (NYSE:ACVA – Get Free Report) and Vestis (NYSE:VSTS – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings for ACV Auctions and Vestis, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACV Auctions | 4 | 7 | 5 | 0 | 2.06 |
| Vestis | 4 | 3 | 1 | 0 | 1.62 |
ACV Auctions currently has a consensus target price of $9.70, suggesting a potential downside of 7.62%. Vestis has a consensus target price of $12.66, suggesting a potential downside of 16.81%. Given ACV Auctions’ stronger consensus rating and higher probable upside, research analysts clearly believe ACV Auctions is more favorable than Vestis.
Insider and Institutional Ownership
88.6% of ACV Auctions shares are owned by institutional investors. Comparatively, 97.4% of Vestis shares are owned by institutional investors. 4.4% of ACV Auctions shares are owned by company insiders. Comparatively, 15.7% of Vestis shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares ACV Auctions and Vestis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACV Auctions | -7.88% | -6.01% | -2.22% |
| Vestis | -0.20% | 7.27% | 2.20% |
Volatility and Risk
ACV Auctions has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Vestis has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
Valuation and Earnings
This table compares ACV Auctions and Vestis”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACV Auctions | $801.34 million | 2.23 | -$66.14 million | ($0.36) | -29.17 |
| Vestis | $2.73 billion | 0.74 | -$40.22 million | ($0.05) | -304.38 |
Vestis has higher revenue and earnings than ACV Auctions. Vestis is trading at a lower price-to-earnings ratio than ACV Auctions, indicating that it is currently the more affordable of the two stocks.
Summary
Vestis beats ACV Auctions on 9 of the 14 factors compared between the two stocks.
About ACV Auctions
ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.
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.
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