Geo Group (NYSE:GEO – Get Free Report) and Vestis (NYSE:VSTS – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Insider and Institutional Ownership
76.1% of Geo Group shares are owned by institutional investors. Comparatively, 97.4% of Vestis shares are owned by institutional investors. 5.0% of Geo Group shares are owned by insiders. Comparatively, 15.7% of Vestis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for Geo Group and Vestis, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Geo Group | 0 | 1 | 4 | 1 | 3.00 |
| Vestis | 4 | 3 | 1 | 0 | 1.62 |
Risk & Volatility
Geo Group has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Vestis has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Profitability
This table compares Geo Group and Vestis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Geo Group | 10.31% | 10.42% | 4.14% |
| Vestis | -0.20% | 7.27% | 2.20% |
Valuation and Earnings
This table compares Geo Group and Vestis”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Geo Group | $2.63 billion | 1.43 | $254.37 million | $2.12 | 13.51 |
| Vestis | $2.70 billion | 0.68 | -$40.22 million | ($0.05) | -278.12 |
Geo Group has higher earnings, but lower revenue than Vestis. Vestis is trading at a lower price-to-earnings ratio than Geo Group, indicating that it is currently the more affordable of the two stocks.
Summary
Geo Group beats Vestis on 11 of the 15 factors compared between the two stocks.
About Geo Group
The GEO Group, Inc. (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects. The company was founded in 1984 and is based in Boca Raton, Florida.
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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