Vestis Corporation (VSTS) vs Willis Lease Finance Corporation (WLFC)

Vestis Corporation and Willis Lease Finance Corporation are both Rental & Leasing Services companies. Vestis Corporation is the larger, with a market value of $1.8B against $1.1B — 1.6× the size. Vestis Corporation has negative trailing earnings, so its P/E is not meaningful; Willis Lease Finance Corporation trades at 13.0×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 17.3% against −0.39%. Willis Lease Finance Corporation has the higher net margin (11.2% vs −0.20%) and the lower return on invested capital (2.62% vs 2.97%). Across the 20 metrics below, Willis Lease Finance Corporation leads on 13 and Vestis Corporation on 7.

Valuation

Metric VSTS WLFC Rental & Leasing Services median
P/E n/m 13.03 19.17
P/S 0.67 1.50 0.99
P/B 2.05 1.62 2.23
Price to free cash flow 12.55 n/m 8.31
EV/EBITDA 12.49 8.70 7.84
EV/Sales 1.11 4.31 2.53
Earnings yield (0.37%) 7.68% 0.95%
Free cash flow yield 7.97% (8.24%) 1.43%

Profitability

Metric VSTS WLFC Rental & Leasing Services median
Gross margin 26.30% 85.43% 49.40%
Operating margin 3.64% 32.48% 8.49%
Net margin (0.20%) 11.24% 1.01%
Free cash flow margin 5.33% (11.63%) 1.87%
Return on equity (0.60%) 12.96% 12.13%
Return on assets (0.18%) 2.26% 0.24%
Return on invested capital 2.97% 2.62% 2.80%

Growth

Metric VSTS WLFC Rental & Leasing Services median
Revenue growth (TTM) (0.39%) 17.34% 3.21%
EPS growth (last fiscal year) (293.75%) 0.33% —
Revenue growth, 5-year CAGR 1.31% 20.39% 12.97%
Net income growth, 5-year CAGR 0.00% 75.97% 0.00%

Health

Metric VSTS WLFC Rental & Leasing Services median
Debt to equity 1.42 3.27 1.48
Current ratio 2.17 1.63 1.36
Net debt to EBITDA 6.12 5.98 4.32

Dividend

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

Size

Metric VSTS WLFC Rental & Leasing Services median
Market cap 1.83b 1.12b 2.42b

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