Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, military contractor VSE (Nasdaq: VSEC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at VSE's business and see what CAPS investors are saying about the stock right now.

VSE facts

Headquarters (founded) Alexandria, Va. (1959)
Market Cap $123.9 million
Industry Research and consulting services
Trailing-12-Month Revenue $611.7 million
Management CEO Maurice Gauthier (since 2008)
CFO Thomas Loftus (since 2002)
Return on Equity (average, past 3 years) 20.7%
Cash/Debt $368.0 thousand / $206.1 million
Dividend Yield 1.3%
Competitors General Dynamics
Northrop Grumman
Todd Shipyards

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 466 members who have rated VSE believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, w3steve, touched on the sustainability of VSE's business model:

A significant part of VSE's business is supporting legacy systems of the Department of Defense (DoD). In a perfect world, the DoD would replace its legacy systems and [VSE], while yielding well today, would lose significant income. Also, as wars wind down, defense spending would fall and VSE's other DoD work would go away.

But things are more likely to go on as they do now, and VSE should rise as income investors recognize its attractive [dividend yield].

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, VSE may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap play with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.