Aaron's Holdings Company, Inc. (PRG) vs Vestis Corporation (VSTS)

Aaron's Holdings Company, Inc. and Vestis Corporation are both Rental & Leasing Services companies. Vestis Corporation is the larger, with a market value of $1.8B against $1.3B — 1.4× the size. Vestis Corporation has negative trailing earnings, so its P/E is not meaningful; Aaron's Holdings Company, Inc. trades at 8.9×. Aaron's Holdings Company, Inc. grew revenue faster over the last twelve months: 7.96% against −0.39%. Aaron's Holdings Company, Inc. has the higher net margin (5.61% vs −0.20%) and the higher return on invested capital (8.67% vs 2.97%). Both pay a dividend; Vestis Corporation yields more (0.70% vs 0.40%). Across the 21 metrics below, Aaron's Holdings Company, Inc. leads on 19 and Vestis Corporation on 2.

Valuation

Metric PRG VSTS Rental & Leasing Services median
P/E 8.88 n/m 19.17
P/S 0.50 0.67 0.99
P/B 1.63 2.05 2.23
Price to free cash flow 4.12 12.55 8.31
EV/EBITDA 1.19 12.49 7.84
EV/Sales 0.81 1.11 2.53
Earnings yield 11.26% (0.37%) 0.95%
Free cash flow yield 24.29% 7.97% 1.43%

Profitability

Metric PRG VSTS Rental & Leasing Services median
Gross margin 94.71% 26.30% 49.40%
Operating margin 8.49% 3.64% 8.49%
Net margin 5.61% (0.20%) 1.01%
Free cash flow margin 12.20% 5.33% 1.87%
Return on equity 19.90% (0.60%) 12.13%
Return on assets 8.37% (0.18%) 0.24%
Return on invested capital 8.67% 2.97% 2.80%

Growth

Metric PRG VSTS Rental & Leasing Services median
Revenue growth (TTM) 7.96% (0.39%) 3.21%
EPS growth (last fiscal year) (20.75%) (293.75%) —
Revenue growth, 5-year CAGR (0.61%) 1.31% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PRG VSTS Rental & Leasing Services median
Debt to equity 1.10 1.42 1.48
Current ratio 4.03 2.17 1.36
Net debt to EBITDA 0.16 6.12 4.32

Dividend

Metric PRG VSTS Rental & Leasing Services median
Dividend yield 0.40% 0.70% 1.59%
Payout ratio 0.00 — 0.00

Size

Metric PRG VSTS Rental & Leasing Services median
Market cap 1.30b 1.83b 2.42b

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