Head-To-Head Review: PureCycle Technologies (NASDAQ:PCT) vs. GFL Environmental (NYSE:GFL)

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

Insider & Institutional Ownership

64.7% of GFL Environmental shares are held by institutional investors. Comparatively, 63.0% of PureCycle Technologies shares are held by institutional investors. 8.7% of GFL Environmental shares are held by insiders. Comparatively, 18.8% of PureCycle Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

GFL Environmental has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for GFL Environmental and PureCycle Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GFL Environmental	2	2	12	0	2.62
PureCycle Technologies	1	1	1	1	2.50

GFL Environmental presently has a consensus target price of $54.89, suggesting a potential upside of 38.49%. PureCycle Technologies has a consensus target price of $12.25, suggesting a potential upside of 101.15%. Given PureCycle Technologies’ higher possible upside, analysts clearly believe PureCycle Technologies is more favorable than GFL Environmental.

Valuation and Earnings

This table compares GFL Environmental and PureCycle Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GFL Environmental	$4.73 billion	3.00	$2.74 billion	$0.32	123.86
PureCycle Technologies	$8.35 million	131.91	-$182.57 million	($1.47)	-4.14

GFL Environmental has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies 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 PureCycle Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GFL Environmental	3.09%	4.53%	1.78%
PureCycle Technologies	-2,062.36%	-393.01%	-22.56%

Summary

GFL Environmental beats PureCycle Technologies on 10 of the 15 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 PureCycle Technologies

PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multiple applications, including packaging and labeling for consumer products, piping, ropes, cabling, and plastic parts for various industries. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.