Custom Truck One Source, Inc. (CTOS) vs Vestis Corporation (VSTS)

Custom Truck One Source, Inc. and Vestis Corporation are both Rental & Leasing Services companies. Custom Truck One Source, Inc. is the larger, with a market value of $2.1B against $1.8B — 1.1× the size. Vestis Corporation has negative trailing earnings, so its P/E is not meaningful; Custom Truck One Source, Inc. trades at 105×. Custom Truck One Source, Inc. grew revenue faster over the last twelve months: 7.03% against −0.39%. Custom Truck One Source, Inc. has the higher net margin (1.05% vs −0.20%) and the higher return on invested capital (4.12% vs 2.97%). Across the 19 metrics below, Custom Truck One Source, Inc. leads on 11 and Vestis Corporation on 8.

Valuation

Metric CTOS VSTS Rental & Leasing Services median
P/E 105.00 n/m 19.17
P/S 1.06 0.67 0.99
P/B 2.63 2.05 2.23
Price to free cash flow n/m 12.55 8.31
EV/EBITDA 8.64 12.49 7.84
EV/Sales 1.87 1.11 2.53
Earnings yield 0.95% (0.37%) 0.95%
Free cash flow yield (2.42%) 7.97% 1.43%

Profitability

Metric CTOS VSTS Rental & Leasing Services median
Gross margin 22.15% 26.30% 49.40%
Operating margin 7.99% 3.64% 8.49%
Net margin 1.05% (0.20%) 1.01%
Free cash flow margin (2.55%) 5.33% 1.87%
Return on equity 2.67% (0.60%) 12.13%
Return on assets 0.60% (0.18%) 0.24%
Return on invested capital 4.12% 2.97% 2.80%

Growth

Metric CTOS VSTS Rental & Leasing Services median
Revenue growth (TTM) 7.03% (0.39%) 3.21%
EPS growth (last fiscal year) (16.67%) (293.75%) —
Revenue growth, 5-year CAGR 45.05% 1.31% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CTOS VSTS Rental & Leasing Services median
Debt to equity 2.03 1.42 1.48
Current ratio 1.34 2.17 1.36
Net debt to EBITDA 4.17 6.12 4.32

Dividend

Metric CTOS VSTS Rental & Leasing Services median
Dividend yield — 0.70% 1.59%
Payout ratio 0.00 — 0.00

Size

Metric CTOS VSTS Rental & Leasing Services median
Market cap 2.10b 1.83b 2.42b

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