Analyzing GFL Environmental (NYSE:GFL) and Smart Powerr (NASDAQ:CREG)

GFL Environmental (NYSE:GFL) and Smart Powerr (NASDAQ:CREG) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

64.7% of GFL Environmental shares are held by institutional investors. Comparatively, 0.2% of Smart Powerr shares are held by institutional investors. 8.7% of GFL Environmental shares are held by company insiders. Comparatively, 15.4% of Smart Powerr shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares GFL Environmental and Smart Powerr”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GFL Environmental	$4.73 billion	3.28	$2.74 billion	$6.80	6.36
Smart Powerr	N/A	N/A	-$1.56 million	($1.73)	-0.69

GFL Environmental has higher revenue and earnings than Smart Powerr. Smart Powerr is trading at a lower price-to-earnings ratio than GFL Environmental, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GFL Environmental and Smart Powerr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GFL Environmental	56.61%	3.66%	1.50%
Smart Powerr	N/A	-2.68%	-2.35%

Analyst Recommendations

This is a summary of current recommendations and price targets for GFL Environmental and Smart Powerr, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GFL Environmental	0	3	10	1	2.86
Smart Powerr	1	0	0	0	1.00

GFL Environmental currently has a consensus price target of $56.67, indicating a potential upside of 30.97%. Given GFL Environmental’s stronger consensus rating and higher possible upside, research analysts plainly believe GFL Environmental is more favorable than Smart Powerr.

Volatility & Risk

GFL Environmental has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Smart Powerr has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Summary

GFL Environmental beats Smart Powerr on 13 of the 14 factors compared between the two stocks.

About GFL Environmental

GFL Environmental Inc. offers non-hazardous solid waste management and environmental services in Canada and the United States. It offers solid waste management, liquid waste management, and soil remediation services, including collection, transportation, transfer, recycling, and disposal services for municipal, residential, and commercial, and industrial customers. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.

About Smart Powerr

Smart Powerr Corp. engages in the waste energy recycling business in China. The company provides energy saving and recovery facilities for various energy intensive industries; waste energy recycling systems for use in nonferrous metal plants; and clean-technology and energy-efficient solutions to reduce air pollution and energy shortage problems. It also designs, finances, constructs, and installs the waste energy recycling project to mid to large-size enterprises involved in high energy-consuming businesses; and provides project investment, investment management, economic information consulting, technical, financial leasing, and financial leasing transactions and consulting services; purchases, repairs, and disposes financial leasing assets; sells and leases energy saving systems and equipment. In addition, the company offers waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas to generate electricity; and flammable waste gases emitted from industrial production processes, such as blast furnace gas, and coke furnace gas, oil or gas to power gas-fired generators, as well as uses the waste heat generated in industrial production to make steam to generate electricity through a steam turbine. Further, it markets its projects to the industrial manufacturers to utilize energy recovery projects in their manufacturing processes, including steel, cement, nonferrous metal, coal, and petrochemical industries. The company was formerly known as China Recycling Energy Corporation and changed its name to Smart Powerr Corp. in March 2022. Smart Powerr Corp. was incorporated in 1980 and is headquartered in Xi'an, China.