Critical Contrast: VSE (VSEC) vs. Its Competitors

VSE (NASDAQ:VSEC) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its rivals? We will compare VSE to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

91.5% of VSE shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 1.8% of VSE shares are held by company insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares VSE and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VSE	7.87%	7.58%	5.48%
VSE Competitors	-278.19%	-46.46%	-4.02%

Earnings and Valuation

This table compares VSE and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
VSE	$1.11 billion	$11.70 million	42.02
VSE Competitors	$8.34 billion	$569.54 million	25.76

VSE’s rivals have higher revenue and earnings than VSE. VSE is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

VSE has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, VSE’s rivals have a beta of 1.31, meaning that their average share price is 31% more volatile than the S&P 500.

Dividends

VSE pays an annual dividend of $0.40 per share and has a dividend yield of 0.2%. VSE pays out 9.0% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for VSE and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VSE	0	5	7	1	2.69
VSE Competitors	2156	8266	12775	580	2.50

VSE currently has a consensus target price of $254.00, suggesting a potential upside of 36.77%. As a group, “Aerospace & Defense” companies have a potential upside of 27.10%. Given VSE’s stronger consensus rating and higher possible upside, equities analysts clearly believe VSE is more favorable than its rivals.

Summary

VSE beats its rivals on 10 of the 15 factors compared.

VSE Company Profile

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, supply chain support, and other services to support the commercial aftermarket medium- and heavy-duty truck market. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.